Skip to main content

Full text of "Annual report"

See other formats


5/S 

San Francisco Public Library 

Government Information Center 
San Francisco Public Library 
100 Larkin Street 5"^ Floor 
San Francisco, CA 94102 



REFERENCE BOOK 

Not to be taken from the Library 




3 1223 09321 1218 

1 r. 



DOCUMENTS DEPT. 

AUG - 3 2001 

. SAN FRANCISCO 
UiPUBLICUBRARY 



08-03-01 A1 1 :04 RCVD 



J0 




•0 


o 


e 




o 


H 


o 


o 




•n 


(Ann 


SAN 


c 


•11 




g 






n 


o 


w 
O 






1 J 

o 



LETTER FROM 

0THE MAYOR 




fls Mayor of San Francisco, I take exceptional pride in the accomplishments 
of the Port of San Francisco during the last fiscal year. Innovative 
thinking on the part of Port management, along v/ith the dedication of 
Port employees, has resulted in a portfolio as diverse as the populace 
and customers it serves. The entire Northern California region has 
benefited from such far-reaching vision. 

Ours is a city of remarkable beauty and unparalleled industry, and the Port of San 
Francisco is the embodiment of all we believe in: progressive land use management with 
an emphasis on long-term value; preservation of our greatest natural asset, water; the 
pledge of open access to all who seek its unique combination of natural wonder and 
industrial muscle; and the improvement of the Port's facilities for the continued 
advancement of technology and commerce. 

For those of you who have not visited our remarkable waterfront, consider this an open 
invitation. The character of the City of San Francisco owes much to the Port of San 
Francisco and its rich legacy of maritime history. 




WILLIE L. BROWN, JR., 
MAYOR OF SAN FRANCISCO 



™' SAN FRANCISCO 

(E)POKT 

The Port Commission is successfully overseeing the most sweeping tronsformotion of the 
Port since World War II. Appointed by the Moyor to bolonce the recommendotions of Port 
staff, tenants and the interest of the citizens of San Francisco, the Commission's bi-monthly 
meetings hove become lively civic events. The removal of the earthquake-damaged Emborcadero 
Freev/ay set the stage for the renewal, and the Commission has successfully led development 
projects from conception to construction. Their dedication and stewardship is leading to a 
revitalized San Francisco waterfront, worthy of its phenomenal waterfront setting, 
V ) 




© 

•0 




KIMBERLY BRANDON 

President 



Left to Right 

MICHAEL HARDEMAN 

Commissioner and 
former President 
1996 S 1997 

DEMISE MCCARTHY 

Commissioner and 
former President 
1998 G 1999 

PIUS LEE 

Commissioner 

BRIAN MCWILLIAMS 

Vice President 




•0 
o 
» 
o H 

o 
•II 

1 « 

C »I1 

Q » 
~~ > 

o 




LETTER FROM 

(>) THE DIRECT 

We ore witnessing a remarkable transformation of the San Francisco waterfront into a dynamic 
place to work and recreate. More than a decade ago, the Loma Prieta earthquake created a 
historic turning point in the Port's revitalization. With the removal of the earthquake-damaged 
Embarcadero Freeway, the waterfront was reconnected to the City. 

Today, Son Francisco's waterfront is being rediscovered by its residents, visitors and businesses 

i ready to invest in maritime, commercial and industrial facilities. Finishing touches are being 
placed on the Embarcadero Roadway, a beautifully designed corridor for vehicles, historic light roil vehicles, bicyclists 
and pedestrians. New public art, light fixtures and landscaping are port of this ambitious City public works program. 

Sounds of pile drivers at Pier 1, on historic restoration project for new Port offices, are welcome after many years 
of planning. Negotiations with Wilson Cornerstone have been finalized to renovate the 101-year old Ferry 
Building, one of our City's most treasured historical landmarks. 

The placement of the scoreboard and sign reading "Willie Mays Plaza" reminds us that Pacific Bell Park, new home 
of the Giants baseball team, now resides on the waterfront. 

The Pier 4.3V2 public access project in Fisherman's Wharf has been completed, offering spectacular views of San 
Francisco Boy to tourists and residents alike. Pier 45 has been restored from an earthquake torn facility to a hub 
for fish processing jobs in San Francisco. 

School groups are seen discovering all types of boots: tugs, pilot boots, ferries and our very special fireboats. The 
sight of young workers planting native plants at the Port's newly restored wetlands at Pier 98, is a fascinating 
story of habitat restoration with new employment opportunities. 

Our cargo shipping industry is on the comeback and our marine terminal is a hub for goods from the South 
Pacific, Latin Rmerico and Asia. Our ship repair tenant has a new drydock and is busy working on commercial 
tankers, cruise, and government ships. Development plans for our new state-of-the-art cruise terminal ore rapidly 
progressing with the San Francisco Cruise Terminal team, which was selected by the Port Commission to build a 
world-class international passenger terminal. 

Our operating revenues increased by 11.0 percent to $42.7 million from $38.5 million the previous year. This revenue 
was generated from property rental to commercial and industrial enterprises, and from maritime operations. 

Throughout this waterfront revitalization, we ore thankful for the guidance provided by the Port Commission. Rnd, it 
is with great pride that I laud Port staff for their dedication, hard work and excellent service in managing the 
port's 7.5 miles of property along the Son Francisco waterfront. 

We have much to be proud of, and much to look forward to, as we continue serving one of the most diverse maritime 
and business portfolios of any U.S. port. 



DOUGLAS WONG, EXECUTIVE DIRECTOR, 
r- PORT OF SAN FRANCISCO 



The Port is a self-supporting enterprise department of the City, fill revenues generated by the 
Port must be used only for Port purposes. The Port receives no operating subsidies from the 
City, and the Port has no taxing pov/er. 

The Port's revenue is derived primarily from property rental to commercial and industrial 
enterprises and from maritime operations which include cargo, ship repair, fishing, harbor 
services, cruise and other maritime activities. 







(In Thousands) 



YEARS ENDED JUNE 30, 1999 1998 1997 1996 1995 



Operating Revenue $42,741 $38,490 $37,290 $32,057 $32,212 



Operating Expenses (33,213) (30,018) (29,877) (26,745) (28,222) 



Operating Income 9,528 8,472 7,413 5,312 3,990 



Other Income/(Expense) (689) 8,003 (305) (1,307) (989) 



Net Income $8,839 $16,475 $7,108 $4,005 $3,001 



Net Income 



The Port posted net income of $8.8 million in fiscal year 1998/99. The previous year's net income of 
$16.5 million included $8.5 million in non-operating income from a one-time payment to the Port 
in exchange for the granting of certain property rights to the City for construction of the 
Mid-Embarcadero Roadway project. Excluding this one time payment, the Port posted net income of 
$7.9 million in fiscal 1997/98. The Port's profitability for fiscal year 1998/99 increased by $0.9 million 
as compared to fiscal year's 1997/98 net income, net of the one-time payment. 

Rssets have been efficiently used to provide increased revenue, enabling the Port to improve its 
facilities, fund capital improvement projects and support maritime operations. 

Fiscal year 1998/99 is the fifth consecutive year of steadily increasing operating income. Operating 
results for the past five years are shown in the table above. 

Operating Revenue || 

Fiscal year operating revenue increased by 11.0 percent to $42.7 million from $38.5 million the 
previous year. The increase was due principally to revenue growth in the following business 
segments: commercial and industrial rent, cargo, and other maritime. Commercial and industrial 
rent increased 16.5 percent to $28.3 million due principally to the effect of new leasing activity, higher 
retail tenant sales, and the full year eff,ect of leases that were either in effect for only a portion of 



998/1999 OPERATING REVENUES BY BUSINESS SEGMENT 



fiscal year 1997/1998 or not scheduled to begin until fiscal year 
1998/99. Cargo revenues increased 41.9% to $2.0 million as a direct 
result of new business activity, and other maritime revenues 
increased 44.8% to $1.6 million due to an increase in dockage revenues. 



Ship Repair 2% 
Fishing 3%/ 

Harbor Services 2% 

Cruise 1% - 
Other Maritime 4% \ 



Other 5% 



Cargo 5% 



Parking 12% 




Operating Expenses 



Operating expenses for fiscal year 1998/99 increased by 10.6% to $33.2 million from $30.0 million the previous 
year. The increase largely reflects higher personnel expenses, increased charges for the Port's use of legal 
services, and higher depreciation and amortization expense. The increase in personnel expenses was primarily 
due to increased staffing and collective bargaining agreements negotiated on a citywide basis. 

Higher legal expenses reflect costs associated with the addition of one full time attorney assigned to the 
Port plus other legal support for environmental and land use issues, and the review and preparation of 
legal documents for development projects under negotiation. The increase in depreciation and amortization 
resulted from the completion of several capital projects during fiscal year 1998/99. 



Other Income (Expense) is typically composed of interest income, interest expense, earthquake damage 
repair expense, federal/state earthquake assistance, and insurance proceeds. The $8.7 million decrease in 
Other Income (Expense) primarily reflects the effect of a one-time payment to the Port of $8.5M in federal 
and state congestion relief funds. The Port received these funds in exchange for granting to the City's 
Department of Public Works certain property rights needed for the Mid-Emborcadero Roadway project. 



fit June 30, 1999, the Port's outstanding bond debt obligations consisted of Port Revenue Bonds, Series 
1994; and City and County of San Francisco Harbor Improvement General Obligation Bonds, Series fl and B. The 
Port's outstanding bond indebtedness decreased by $4.3 million, or 8.0 percent, to $48.9 million in fiscal 
year 1998/99. In fiscal year 1998/99 the Port made the final payment on the State of California General 
Obligation Bonds, Series H. 

Net revenue pledged to the Revenue Bonds is required to be maintained at 1.30 times net revenue available 
for revenue bond debt service. Fiscol year 1998/99 bond debt service coverage was 3.45 times, as compared 
to 3.04 times in fiscal year 1997/98. 





BPLRNCE SHEET 



(In Thousands) 



flS OF JUNE 30, 



ASSETS 

Current Assets: 

Cash and investments, held in 
City Treasury — Port operating fund 

Receivables — Net 

Materials and supplies 

Prepaid insurance and other assets 



Total Current Assets 



Restricted Assets: 

Cash held in City Treasury : 

Lessee Deposits 

Capital Outlay 

Cash and investments, held by Trustee — 
Bond interest and redemption 

Investments — Lessee deposits held in trust 



Total Restricted Assets: 



Property, Plant, and Equipment — Net 



Other Assets 



Total Assets 



1999 



41,046 
7,845 
1,226 
300 



50,417 



2,484 
6,803 

9,577 
1,111 



19,975 



211,738 



5,586 



287,716 




46,873 



2,340 
6,947 

9,502 
916 



19,705 



210,670 



3,782 



281,030 



© 

•0 



Copies of the Port's complete financial statements and independent auditor's report may be obtained for $2.50 
from the Accounting Manager, Port of San Francisco, Ferry Building, Suite 3100, San Francisco, Cfl 94111. 




(In Thousands) 



f 


AS OF JUNE 30, 


1999 


1998 ^ 




LIABILITIES AND EQUITY 








Current Liabilities 

Payable from Current Assets: 








Accounts payable and accrued liabilities 


$ 8,927 


$ 7,866 




Current maturities of bonds payable 


1,200 


1,485 




Current maturities of loans payable 


1,200 


900 




Accrued interest payable 


220 


66 


Total Current Liabilities 


11,547 


10,317 




Current Liabilities 

Payable from Restricted Assets: 








Current maturities of bonds payable 


2,930 


2,800 




Accrued bond interest payable 


1,274 


1,340 




Lessee deposits 


3,595 


3,256 




Deferred grants 


38 


12 


Total Poyable 

from Restricted Assets: 


7,837 


7,408 


Deferred Revenue — Net of current portion 






Bonds Payable — Net of current moturities 


43 £72 


47 687 


Loans Payable — Net of current maturities 


9,981 


11,181 


Total Liabilities 


77,470 


80,945 




Equity: 








Contributed capital 


21,101 


20,347 




Revaluation of property 


56,063 


56,063 




Retained earnings 


133,082 


123,675 


Total Equity 


210,246 


200,085 


V 


Total Liabilities and Equity 


$ 287,716 


$ 281,030 J 



STRTEMENT OF INCOME 







(In Thousands) 





YEARS ENDED JUNE 30 


1999 


1998 "\ 




Onei^fl^ina Revenues * 










^ V III Mid VIU 1 VII Ivl X 1 l\JU 9 LI lU 1 Ixd 1 L 


< 


OR '^'^1 

^ O y <J ^ X 


$ 24,317 




pnrkina 

r \ji 1 IX III \M 




5,320 


5, 536 




Cargo 




1,986 


1 Ann 




Fishing 




1,239 


1,187 




Ship repair 




959 


1,188 




Harbor services 




790 


775 




Cruise 




362 


D*f/ 




Other maritime 




1,609 


1,111 




Other 




2,145 


2,429 


Total Operating Revenues 


42,741 


38,490 




Operating Expenses: 










Operations and maintenance 




26,820 


24,129 




Depreciation and amortization 




6,393 


5,889 


Total Operating Expenses 


33,213 


30 018 


Operating Income 


9,528 


8 472 




Other Income (Expenses): 










Interest and investment income 




2,687 


2,457 




Interest expense 




(3,541) 


(3,260) 




Other non-operating income 




2,137 


9,159 




Other non-operating expense 




(2,137) 


(635) 




Gain from fire insurance settlement 




174 


274 




(Loss) gain on disposition of assets 






8 


Total Other Income (Expense) 


(«89) 


8,003 


V 


Net Income 


$ 


8,839 


$ 16,475^ 



STATEMENT OF EQUITY 




(In Thousands) 

YEARS ENDED JUNE 30, 1999 AND 1998 



Balances as of June 30, 1997 

Capital grants 

Other contributions 

Depreciation on fixed assets acquired 
from or constructed through capital 
grants and other external sources 
that reduces contributed capital 

Net income for the year ended 
June 30, 1998 



Contributed Revaluotion 



Capital 



$ 20,040 
215 
660 



(568) 



of Property 



Retained 
Earnings 



Total 
Equity 



$ 56,063 



$ 106,632 



568 



16,475 



$ 182,735 
215 
660 



16,475 



Balonces as of June 30, 1998 

Capital grants 

Other contributions 

Depreciation on fixed assets acquired 
from or constructed through capital 
grants and other external sources 
that reduces contributed capital 

Net income for the year ended 
June 30, 1999 



$ 20,347 
332 
1,000 



$ 56,063 



$ 123,675 



(568) 



568 



8,839 



$ 200,085 
332 
1,000 



8,839 



Balances as of June 30, 1999 



$ 21,101 $ 56,063 



$ 133,082 



$ 210,246 



STATEMENT OF CRSH FLOWS 



/ 



© 

•9 



(In Thousands) 



YEARS ENDED JUNE 30, 



Cash Flows from Operating Activities: 

Cash received from tenants for rent 

Cash received from customers 

Deposits received from tenants and customers 

Cash paid to employees for services 

Cash paid to suppliers for goods and services 

Cash paid for quasi-external transactions 

Customers deposits returned 



Net cosh provided by operating activities 



Cash Flows from Noncapital Financing Activities: 

Proceeds from operating grant 
Operating grant expended 
Proceeds from disaster assistance 
Earthquake and storm damage repair expenses 



Net cosh (used for) provided by noncapital financing activities 



Cash Flows from Capital and Related Financing Activities: 

Acquisition and construction of property, plant and equipment 

Dredging costs incurred 

Additions to Waterfront land use plan 

Capital grants received 

Contributed capital other than from grants 

Net insurance proceeds from fire casualties 

Proceeds from loans, net of issue costs 

Payment from City for real property rights 

Principal payments on long-term debt 

Interest payments on long-term debt 

Interest expense capitalized 

Interest income capitalized 

Proceeds from sole of materials 



Net cash used for capital and related financing activities 



Cash Flows from Investing Activities: 

Interest income received 
Investments purchased by Trustee 



Net cosh (used for) provided by investing activities 



Net Increase in Cash and Cash Equivalents 
Cash and Cash Equivalents: 

Beginning of year ^ 

End of year 



1999 



$ 35,377 
5,512 
556 
(13,839) 
(4,124) 
(5,581) 
_ (413) 
17,488 



600 
(624) 

925 
(1,401) 
(500) 



(7,986) 
(1,891) 
(204) 
297 
1,000 
174 

8,524 
(5,185) 
(3,249) 
(264) 
202 
18 



(8,564) 

2,870 
(5,361) 
(2,491) 

5,933 



48,616 

$ 54,549 



1998 



$ 31,324 
4,255 
874 
(13,338) 
(4,240) 
(6,426) 
(170) 



12,279 



9,149 
(2,^635) 
6,514 



(14,588) 
(99) 
(502) 
1,138 
477 
274 
11,696 

(4,160) 
(3,125) 
(367) 
202 
8 



(9,046) 



2,322 



2,322 



12,069 



36,547 



$ 48,616 





© 






NO 


o 






o 


H 


o 


o 




•n 




SAN 


c 


•II 


Q 






> 


73 




n 


o 


-o 




o 






o 




o 







ID 

(In Thousands) 






YEARS ENDED JUNE 30, 


1999 


1998 




Noncash Noncapital Financing Activities: 












Earthquake damages and expenses included in accounts 
pijyuDic unu uccrucru iiuuiiiLicb 




•1 Q T 
1 




loy 




Noncash Capital and Related Financing Activities: 












Building (tenant) improvements financed by rent credits 




528 




1,073 




Requisition and construction of property, plant and equipment 
included in accounts payable and accrued liabilities 




370 




1,458 




Requisition of real property rights to be paid by the City 








6,524 




Noncash Investing Activities: 












Chonge in fair value of cash and investments held in City Treasury 








131 




Reconciliation of Net Income to Net Cash 

ni^AVi H^H liv OnAi^nt^nfi vi 4*^ * 












Onprn'hirin inmm^ 






< 


ft >l 70 
, 4- / Z 




provided by operating activities: 












Depreciation and amortization 




6,393 




5,889 




Change in allowance for doubtful accounts 




46 




(647) 




Loss on disposal of assets 








13 




Net change in deferred revenue 




(187) 




(465) 




Changes in assets and liabilities: 












(Increase) decrease in: 












Receivables 




(220) 




(298) 




Materials and supplies 




(146) 




(106) 




Prepaid insurance and other assets 




153 




(204) 




Increase (decrease) in: 












Recounts payable and accrued liabilities 




1,777 




(1,079) 




Lessee deposits 




144 




704 


Net cash provided by operating activities 


$ 


17,488 


$ 


12,279 




Reconciliation of Cosh and Cash Equivalents 
to the Balance Sheet: 












Cash and investments held in City Treasury -Port operating fund 


$ 


41,046 


$ 


30,191 




Cash held in City Treasury: 












Lessee deposits 




2,484 




2,340 




Capital outlay 




6,803 




6,947 




Cosh held by Trustee -Bond interest and redemption 




4,216 




9,502 








54,549 




48,980 




Less - Change in fair value of cosh and investments held in City Treasury 








(364) 




Cash and cash equivalents 


$ 


54,549 


$ 


48,616 



The unique synergy between the historic 
fishing fleet operations, restaurants, and 
the area^s many entertainment activities 
has long made Fisherman's Wharf a favorite 
with residents and visitors alike. This is the 
northernmost tip of the Port, with views of 
the Golden Gate, and Mt. Tamalpais across 
the San Francisco Bay. More than just a 
tourist destination, this area exemplifies 
how genuine maritime activities are in and 
of themselves an attraction. 




fldjacent to the crab pots, 
sec lions and tourists which 
charocterize Fisherman's Wharf , 
lies the largest, most modern 
commercial fish processing 
facilities o*n the West Coast. 
Designed and built to exceed 



even the most stringent Food and 
Drug administration regulations, 
the operation in Sheds B G D, 
recently developed by the Port, 
has helped revitalize the region's 
fishing industry. 



fls a sign of its commitment to 
the historic fishing fleet, the 
Port has eormarked $5 million for 
construction of the Hyde Street 
Horbor that begins in spring 2000. 
This new, 62-berth commercial 
fishing harbor, complements the 
processing operations and further 



supports San Francisco's lively 
fishing industry. 

These new developments, in 
combination with the strong 
tourist trade, have focused 
attention on reuse of the 
adjoining Shed fl. In Pugust, 



1999 the Port issued a Request 
For Proposals (RFP) seeking a firm 
to develop and operate a San 
Francisco Bay Maritime-oriented 
public attraction. 




The tourist industry continues to play an important 
role in the diversity of the Port's operations. Visits 
to flicatraz via the ferries that dock at Pier 43V2or 
walks through a watery grotto deliver fun. The Port 
area between Piers 33 and 43V2 provides visitors 
and residents alike with an amusing combination of 
kitsch, cuisine and culture. Last year this area played 
host to over 15 million people. 



'•1 





© 


NO 











1 


H 











1 ^nn 


SAN 


c 


•II 


! Q 






► 




X 







•0 







(/) 














In early 2001, as a vintage 
1900 pier bell tolls the hours, 
regular ferry service to and from 
Vallejo v/ill return as Pier 43 
comes bock on line in a unique 
mix of preservation, transit 
and open space. 




fl sign of the changing times at the Port, Piers 27-31 are slated to 
become an active recreation facility, fls nearby areas hove transformed 
into vibrant urban neighborhoods, the need for boating, open space ' 
and recreation opportunities has increased, fin RFP has been issued 
for redevelopment of underused portions of this site, based on the 
evolving needs of the public. 





Piers 27-31 offer a special 
opportunity to develop o diverse 
mix of commerciol, boating and 
open space uses in a dramatic 
waterfront setting. This project 
will create new recreation 
facilities and programs serving 
the recreational needs of San 
Francisco and Bay Rrea residents. 



Until redevelopment of Piers 27-31 
begins, the south side of the 
berth at Pier 27 will remain the 
home of the U.S. Maritime 
fidministration's USS Cape Henry. 
The Port of San Francisco continues 
to support the country's defense 
by providing berths for the Henry, 
Cape Orlando, Chesapeake, Cape 



Mohican and Cape Hudson at 
various piers along the waterfront. 

In times of need, these vessels 
are immediately able to ship out 
and join the US firmed Forces 
anywhere in the world. 




The area between Fisherman's Wharf and the Ferry Building 
has become the City's most popular and scenic promenade. 
Everyday, thousands of strollers, roller-bladers and bicyclists 
traverse the area, taking in the sites and sounds of the 
Port. From the bulky majesty of the Bay Delta Tugs at Pier 15 
to the understated beauty of Pier 7, this area is a testament 
to the Port's diverse attributes. People from all walks of life 
use the Port lands on a daily basis for commerce, recreation 
and cultural enrichment. 



an 




The Northeast waterfront's 
massive, arched bulkheods of 
the historic piers protect the 
Herb Caen Way promenade from 
the wind and fog that often 
blows inland from the Bay. 



fin architectural testament to 
the historical role that break 
bulk shipping played, these 
piers now provide a historic 
backdrop to a city thriving with 
a diversity of new industries. 





NO M 



o o 
•II 



— > 
o w» 



Just across from the piers, the 
Port is pursuing a new hotel 
development on Broadwoy and 
The Embarcadero, in the heart 
of the City's advertising district 



With proximity to both Chinatown 
and the Financial District, this 
108,292 square foot site provides 
an outstanding opportunity 
to bring more people to the 
water's edge. 





./X 



V/ 




Across from the graceful towers of Embarcadero 
Center, these piers seem relatively sedate. But much 
is happening behind the gray stucco facades: Pier 1 
has been placed in the National Registry of Historic 
Places by the US Department of the Interior, so the 
Port is moving to preserve this unique space through 
tightly controlled development. 




The Port offices will soon move 
to Pier 1 to moke way for the 
rehobilitotion of the historic 
Ferry Building. The move will 
preserve the historic Pier 1 
bulkhead Ond shed, increase 



the accessibility of Port services, 
consolidate operations and 
provide large public meeting 
spaces for Port and other 
public functions. flMB Property 
Corporation, the developer 



undertaking the restoration and 
build-out of Pier 1, expects the 
$42 million project to be completed 
before the end of 2000. 



'fiMB is in the business of owning High Throughput Distribution 
facilities near or on airports, ports and convenient to major 
freeways and seaports in hub distribution markets nationwide. 
We are, therefore, very honored to have been chosen to 
restore - and eventually occupy -a historical industrial property 
on the San Francisco waterfront." 

HRMID MOGHRDAM 
CHIEF EXECUTIVE OFFICER 
RMB CORPORRTION 





Rs we enter a new era, the Port of Son Francisco is 
moving alongside us, keeping its activities in step 
with the changing needs of a new economy and 
a new society. Even our optimistic and pioneering 
forebearers could not have foreseen the beauty, 
diversity and strength shown by San Francisco 
and its Port today. 





One of the waterfront^s most visible transformations is taking place 
right at the heart of the Port: the historic Ferry Building, fl hub of 
activity for over 100 years, the restored Ferry Building will reaffirm 
the importance of this San Francisco icon as a center of transport, 
commerce and culture for all who live or visit this great city. 



RESTORATION 




'The Ferry Building is more than a landmark; it is a symbol of San Francisco 
and the focal point of the City's revitalized waterfront. It is a great 
honor for us to work with the Port of San Francisco in preserving and 
restoring the history of this fine building while giving it new life 
through the creation of a vibrant market hall and related commercial 
space. The Ferry Building is a treasure, and not often does one have a 
chance to give back to the community something as substantial as this 
opportunity affords us. " 

WILLIAM WILSON III, PRESIDENT 
WILSON CORNERSTONE PROPERTIES 




© 

•0 



The Port and its partner, are 
returning the Ferry Building to 
its historic prominence, in part 
through the creation of an 
open-air marketplace that will 
spill out onto the Embarcadero, 
highlighting the region's 
importance as a culinary 
destination. The waterfront's 
new plaza is already seen as a 



transportation hub and public 
gathering place in front of the 
Ferry Building. Made of patterned 
granite, lined by Canary Island 
palms and punctuated by two 
"Millennium Lights" whose 
beams will shine into the night, 
the new plaza sets the stage 
for the Ferry Building's historic 
restoration. In a striking 



confluence of the old and the 
new, historic trolley cars ply 
the tracks from the Ferry 
Building north to Fisherman's 
Wharf, while the modern 
streetcars of the MUNI Metro 
emerge from underground and 
run along the Embarcadero to 
the south, post Pacific Bell 
Pork to the CalTroin Station. 



® SAN FRANCISC 





t -ERRY TERMI NAL 

Ferry ridership is on the rise. In response, the 
Port of San Francisco has joined with federal 
and state transportation agencies, to construct 
the new $15 million Phase I of the San Francisco 
Ferry Terminal, the hub of the Bay Area Region^s 
rapidly growing ferry system. 
I V ) 




The construction of two new 
terminols will add four modern 
end weather-protected berths 
to the Port's ferry-docking 
facilities at the historic and 
central Ferry Building. This award 
winning project will double the 
current ferry passenger load to 
over 20,000 persons per day, 



and expand the historically 
vital ferry system linking the 
City's downtown and Financial 
District with communities 
throughout the greater Bay 
Area. The future Phase II of 
the project will add concessions 
facilities and additional 
terminals, making new 



southbay ferry and airport 
hovercraft service a possibility. 
The eloquent design of the new 
terminals in combination with 
the renovated Ferry Building 
will create a stunning waterfront 
gateway to one of the world's 
most beloved cities. 



PIERS 2022^2 




become a popular spot for a 
stroll. The plonned Rincon 
Park, with its open green 
spoce and new restaurants, 
will soon be bustling with 
acti\ity nearly around the 
clock. The popularity of Herb 
Caen Way is probably the 



the people have been 
reunited with the Port and 
the Boy in a manner that 
reflects San Francisco's 
waterfront heritage. 



With the significant increase 
in housing and office space 
in neighborhoods adjacent 
to the waterfront, the 
promenadfc along the Bay, 
named Herb Caen Way in 
memory of the City's beloved 
newspaper columnist, has 




The Pier 2-22V2area provides a vital link between the burgeoning 
Rincon Point/South Beach neighborhood and the Ferry Building. 
The memory of the massive elevated Embarcadero Freeway that 
once cut off the waterfront from the rest of the city is fading. 
Today the area is more often thought of as a great place to view 
the Bay Bridge at twilight or the valiant fireboats of the San 
Francisco Fire Department, as they stand at the ready. 



"Our waterfront renaissance reflects the health and vitality of San 
Francisco. Local residents, businesses and visitors can all enjoy both 
the nev/ and old features of this lively neighborhood. Gap Inc. is proud 
to be a part of the excitement with the construction of our new office i 
building at 250 Embarcadero." 

DON FISHER 
FOUNDER AND CHfllRMflN, GAP INC.' 



piERs24 ^28 

Rt the foot of the Bay Bridge stand two piers that sport 
a Spanish design that sets them apart from the other 
historic bulkheads. While maritime businesses comprise 
the bulk of the tenants in these Piers, the beautiful 
structures have attracted a few adventurous, non-maritime 
businesses such as construction management and industrial 
design firms, bringing a higher and more diverse level of 
foot traffic to the area. Pier 28 also serves as an interim 
site for fish processors until more permanent space is 
available at Fisherman's Wharf. 

s > 



The Port is in negotiations 
with Metropolis Partners, 
Inc. and Polatnick Properties 
to rehabilitate the now 
vacant Pier 24 finnex Building 
into a vibront multi-use 
facility that provides public 
access to the waterfront 
while preserving the building's 
historic character. 




umi ttfim 



IM w III 




n 





The revitalization of South Beach has been remarkable, to say the least. 
Tremendous improvements to Port properties in the area have spurred 
the successful redevelopment of this area. Once characterized by 
abandoned vy^arehouses, rusted railv/ay and litter-strewn lots, streets 
now teem with urban life. With the new James R. Herman International 
Cruise Terminal and mixed-use development now being planned, the 
excitement has only just begun. 



so® 34 



♦ \ 





fit an estimated cost of $300 million, 
the world-class James R. Herman 
Cruise Terminal and mixed-use 
development at the Bryant Street 
Pier is the largest project ever 
undertaken on Port lands. In 
addition to state-of-the-art 
cruise facilities, Lend Lease 
Development US, Inc.'s v/inning 
proposal includes retail ond 



commercial office space and 
conferencing facilities. Cultural 
exhibits shov/ing, for example, 
Pacific Rim Immigration and the 
achievements of the San Francisco 
Labor Movement will grace the upper 
level of the terminal, fill of these 
elements will make the terminal a 
dynamic waterfront destination 
that will further enhance the 



South Beach neighborhood. 
Next on the list of neighborhood 
improvements is the Bronnon 
Street Wharf project, which will 
include removal of dilapidated Piers 
34 and 36 to moke way for a major 
new open space to serve the public. 




fit Pier 38, the Port's The Center's operators hove 

Maritime Recreation Center invested more than $4 million 

provides storage for in pier repairs and a new 

boaters who desire instant docking system. Plans for a 

access to their vessels. new restaurant site are 

currently in the works. 



Boaters populate this area, as it is home to South Beach Marina, a 
pleasure craft harbor maintained by the San Francisco Redevelopment 
Agency, as a Port tenant. The Port is committed to facilitating access 
to the Bay for the citizens of San Francisco, and equally committed to 
providing a welcome arrival for pleasure craft that visit the San Francisco 
Bay from around the world. 




'The new millennium brings great things for San Francisco's waterfront. The 
opening of Pacific Bell Park coincides with the completion of the new MUNI 
rail line along The Embarcadero which stops right at the ballpark. The 
waterside promenade along The Embarcadero will be a particularly 
enjoyable route for walking, cycling or rollerblading to Pacific Bell Park 
from the downtown area and BflRT stations. We think our fans will be 
delighted with our new park and the new look of the City's waterfront." 

PETER MflGOWflN 
PRESIDENT AND MANAGING PARTNER 
SAN FRANCISCO GIANTS 



To help serve the Giant's fans 
from around the Bay, the Port is 
installing a state-of-the-art ferry 
landing immediately adjacent to 
Pacific Bell Park. The China Basin 
Ferry Landing will accommodate 
eight ferryboats per hour, 
transporting over 3,200 fans to 



and from each ballpark event. 
In addition, the landing will 
serve commuters to the growing 
South Beach, China Basin and 
Mission Bay neighborhoods as 
they continue to develop. 





Along this stretch of the 
waterfront you'll also find 
eateries with scenic views of 
the City, the Bay and the 
Port's industrial waterfront 



such as the ship repair 
operations at San Francisco 
Drydock. The well-loved Ramp, 
a traditional waterfront 
restaurant and the renovated 






Kelly's Mission Rock, a modern 
restaurant built of corrugated 
metal and glass that now holds 
a 25-year lease with the Port. 
During baseball season, Mission 



e 



Rock's owners plan to offer an 
"only in San Francisco" experience 
to Giants fans -water taxi rides 
from the restaurant's dock 
directly to Pacific Bell Park. 




t 
t 

ff 

I 



•••f 




SOU 



One of the Port's most exciting opportunity areas, the 
southernmost part of the waterfront is an historic part of 
our industrial past. The former Union Iron Works, producer 
of the iron rails, steamships and I-beams that built the 
West, and the yards that were the terminus of the Western 
Pacific Railroad are sited here. Both of these properties 
feature acres of space and historic buildings, and are slated 
to be the next major development areas in the Port's portfolio. 





The operation at San Francisco 
Drydock, Inc., is a familiar site 
to many San Franciscans who 
work or reside in the southeast 
quadrant of the City. Operating 
under a lon^-term lease for 17 



acres of land and more than 16 
acres of water, the drydock 
plays a vital role in the Port's 
overall maritime portfolio. 



t 



This year, San Froncisco Drydock 
attended to a myriad of vessels, 
large (the Celebrity Mercury), 
important (the hospital ship 
Mercy) and historic (the ferryboat 
Eureka). Adding to the capacity 



of this historic shipyard, the 
Port facilitated the purchase of 
a modern drydock from the 
General Services Administration . 




P IERS 8 ^ 94 

Maritime cargo continues to be the Port's link to 
international commerce. The Pier 80 Omni Terminal 
services container, bulk and breakbulk cargo 
travelling to and from countries around the world. 
First class service, competitive rates and the most 
modern and flexible facilities have made the Port 
of San Francisco the terminal of choice for Columbus 
Line, Maruba, P&O Nedlloyd, Polynesia Line, South 
Pacific Line, TMM Line and Trans-Pacific Line. In 
all, cargo increased by 94% in 1999. 



San Francisco offers one of the 
best Omni Cargo Terminals in 
the Boy Area, with modern 
facilities, deep water, acres of 
unobstructed lay-down space, 
hundreds of thousands of 



square feet of warehousing, 
reefer outlet capacity, lack of 
congestion and competitive 
pricing. The diversity of the 
cargo terminals has allowed 
the Port to develop a variety 





of maritime cargo businesses. 
Not only are containers coming 
and going from the vessels 
docked at the terminal but 
other types of cargo as well. 
Rolls of newsprint are brought 
in from Asia, and delivered to 
plants that produce the local 



newspapers. Shells of passenger 
trains are brought in on huge 
auto carrier vessels, taken into 
the warehouses at the terminal 
and equipped with windows, 
doors, air conditioning, carpeting, 
electrical systems, signs and 
tested for water tightness 



before being delivered to one of 
the Bay Rrea Transit Authorities. 
And wastepaper recycled in the 
warehouse at Pier 96, is sold to 
buyers in Asia and delivered in 
containers to vessels at Pier 80. 





The Heron's Head Park wetlands 
restoration project is on 
important victory for the 
Port, the community and the 
environment, fl partnership 
between the Port, the 



Association of Bay firea 
Governments, the San Francisco 
Public Utilities Commission and 
the State Coastal Conservancy, 
Heron's Head Park is a vital 
part of the region's ecosystem. 



9*/ 




In addition to supporting industry, recreation and culture, the Port 
is dedicated to the task of preserving our natural resources. Part of 
what makes the Port such a nice place to visit is the enjoyment of 
the flora and fauna of the Bay. By being sensitive to the complexities 
and importance of the Bay's ecosystem, the Port of San Francisco is 
providing the leadership that will keep the waterfront truly alive for 
both current visitors and for generations to come. 
< ) 




More than seventy percent of 
the shorebirds migrating along 
the flIaska-to-South America 
route known as the Pacific 
Flyway feed and rest at salt 
marshes in San Francisco Bay. 
Heron's Head Park has already 
become a popular stopover 



for some of the millions of 
shorebirds that make this trek 
each year, to the immeasurable 
delight of schoolchildren and 
naturalists alike. 



© 



Peter Dailey 
Director, 
Maritime 



Theresa Picon 
Director, 
Real Estate 



Benjamin Kutnick 
Director, Finance 
& Administration 




Rlex Lee 
Director, Facilities 
G Operations 



Paul Osmundson 
Director, Planning 
& Development 



^ ^^^^ 



EXECUTIVE 


Ray Cordova 


George B. Kennady 


Renee D. Dunn 


Philip L. Courtney 


Gary R. Kennedy 


Imani Haygood 


Ernesto G. Custodio 


Christopher E. Kiesselb 


Pmy Quesada 


Ezra C. Daniels 


Jerry P. Kondeff 


Veronica Sanchez 


Ellen E. Dehr 


Brian L. Kosch 


Douglas F. Wong 


Gary L. Derenzi 


Wain L. Kung 




Richard R. Detra 


Bruce E. Lanham 


FACILITIES 8 


Donald G. Dodson 


Riexander K. Lee 


OPERATIONS 


Jesus M. Dominguez 


Gary Lee 


Kenneth R. flbrahamson 


Brooke Dubose 


Olivia W. Lee 


Lonnie L. flifano 


Michael R. Duckworth 


John G. Leonard 


Rochelle V. Rlvir 


George B. Dudley 


Jie (Echo) J. Liu 


Carol E. Bach 


James C. Elbing 


Stanislaus L. Loftus 


Gerald C. Baker 


TimmothyJ. Felton 


Melvin D. Long 


James R. Balsham 


Darrell B. Fisher 


Daniel P. Maguire 


Larry E. Bean 


Derek 0. Freeman 


Manuel E. Manuel 


Rnthony Bettiga 


Michael P. Gallagher 


Giovanni I. Martinez 


Jeffrey S. Bettiga 


Timothy J. Gallagher 


Mark R. Maxemin 


Richard V. Bettiga Jr. 


Frederick F. Gerard 


Kevin P. Mcguire 


Mabal S. Bhat 


Peter Gorbachev 


Brent E. McLain 


William J. Bickle 


Orville F. Gotcher 


James D. Meisenbach 


Leo J. Brogagnolo 


Harold F. Groff 


Thomas J. Meisenbach 


Edmund C. Bubnis 


Galford S. Hash 


Richard M. Mello 


Tyrone L. Burney 


Kenneth E. Hayes 


Walter R. Melton 


Luisito C. Bustamante 


James E. Hearn 


Robert J. Meschi 


Thomas F. Butler 


John V. Holt 


John R. Miller 


Edward F. Byrne 


Dave Howlett 


Nieret J. Mizushima 


Oswaldo R. Caamano 


Cathy C. Huynh 


Ronald P. Mondfrans 


Rngelo F. Calvo 


Mary E. Ilyin 


Bruce R. Myszka 


Earl J. Cater 


Lawrence F. lorio 


Henry L. Navarro 


Robert Cavagnaro 


Clifford G. Jarrard 


Rian H. Nevling 


Maria M. Chen 


Kevin W. Jensen 


Ralph M. Newton 


Kung-Hang Chiu 


Daniel W. Johnson 


Rmir Mansur M. Niufar 


Riexander T. Chong 


Kevin E. Johnson 


Edward T. Ochi 


Kenneth J. Chu 


Richrd G. Johnson 


Michael T. O'Connor 


Stanley S. Chu 


Willie C. Johnson 


GaryW. Olson 


Steve J. Coccellato 


Robert J. Keith 


Alexander Parisotto 


Richard fl. Cortforan 


William M. Kelly 


Kevin J. Patterson 



1 



Tom Petersen 
Lawrence Peoples 
Michael J. Petrie 
Glenn G. Phillips, III 
Charles F. Piazza 
Rodney Pond 
Harold D. Poulsen 
Gary R. Prunty 
David J. Rauenbuehler 
Scott P. Riley 
Joseph H. Roger 
Jaroslov Rosicky 
Bruce Samson 
Nick 6. Sarantes 
Bill Schiavo 

Roberta L. Schoenholz 
John J. Scully 
Martin J. Shea 
Gene P. Sheets 
Gary S. Silvestri 
Carl H. Stevenson 
Michael S. Stez 
Miriam V. Tortolero 
Taide G. Tovor 
John E. Troup 
finthony T. Umali 
William J. Van Der Ploeg 
James P. Walker 
Lisa Pnne I. Wallis 
Harold D. Webber 
Jerzy Wienskowski 
Joyce K. Wong 
Kenneth D. Yee 
Victor Yew 
Mojgan Yousef khan 
Jack K. Yu 
Sanford S. Zeller 



FINANCE 8 
ADMINISTRATION 

Ellen J. nbels 
Luis C. fldona 
Belen C. Rfable 
Nelson Rivarado 
James R. Rragon 
John M. Barnett 
Janet G. Bias 
Don Breazell 
Lawrence D. Brown 
Nilda S. Casipit 
Irene H. Chan 
Connie M. Chu 
Fannie S. Chu 
Lilibeth R. De Rivera 
Wilfredo M. Delizo 
Stephanie M. Downs 
Scott "DJ" Dura 
Fe Zenaida J. Erfe 
Yolanda G. Esguerra 
Elizabeth V. Fitzgerald 
Rdaya M. Hamrick 
Smouel K. Ho 
Edith R. Jobon 
Benjamin R. Kutnick 
Julie Lee 
Samuel Lew 
Lynette F. Lum 
Kathleen R. Mallegni 
Stephen fl. Martin 
Stella W. Ng 
Eliza Y. Ngo 
Kim-Lien I. Nguyen 
Tuong T. Nhieu 
George U. Onyemem 
Lydia 0. O'Skea 
Manuel R. Pacheco 



MauricioJ. Rodriguez 
Prnold G. Santiago 
Kathleen L. Sully 
Jeffrey R. Tom 
Amy S. Tsao 
Rngelina C. Tse 
Victor D. Wong 
John J. Woo 
Mary Ellen Wriedt 

HUMAN RIGHTS 
COMMISSION 

Maria Cordero 
Preston Tom 

LEGAL 

Noreen Rmbrose 
Lisa Clay 
Victoria Gavidio 
Dianne Millner 
Neil Sekhri 
Laurel Turner 
Patricia Viol 
Timothy Yoshida 

MARITIME 

Louise C. Rnderson 
Peter fl. Dailey 
John M. Davey 
Nicholas J. Lorocco 
Michael T. Nerney 
Hedley G. Prince 
Gerard L. Roybol 
Senaite Shifferaw 
Jill J. Simpson 
Denise Turner 
Rnita R.P. Yao 



PLANNING 8 
DEVELOPMENT 

Lemont E. Rdoms 
Rlec Bash 
Daniel M. Bell 
KirkW. Bennett 
Rnne E. Cook 
Marshall L. Foster 
Richard R. Hentschel 
Rich Hillis 
Dan M. Hodapp 
Floristine Johnson 
Kari D. Kilstrom 
Brojoh Norris 
Diane Y. Oshima 
Paul E. Omundson 
Mark Paez 
Rpril T. Show 
Jennifer G. Sobol 

REAL ESTATE 

Jeffrey fl. Bauer 
Claudia L. Davison 
Nicolas J. Dempsey 
Renee L. Jones 
Yukling L. Lee-Lam 
Qiao Yi Lin 
Mark W. Lozovoy 
Denise M. Martinez 
Theresa M. Picon 
Elliot B. Riley 
Corazon R. Sapaen 
Dede C. Satten 
Phillip J. Williamson 
Patricia L. Wilson 
Virna C. Wu 
Warren Y. Young 



e 




PortofSoi CO 

The Ferry Building 
San Francisco, 
California 94111 
Tel: 415.274.0400 
Fax: 415.274.0528 
www.sfport.com 




EXECUTIVE STftFF 

Executive Director: Douglas F. Wong 

Director, Maritime: Peter fl. Dailey 

Director, Finance 6 Administration: 
Benjamin fl. Kutnick 

Director, Facilities & Operation; 
Alexander K. Lee 

Director, Planning & Development: 
Paul E. Osmundson 

Director, Real Estate: Theresa P 

General Counsel: Noreen flmbro 

Manager, Government Affairs: 
Veronica Sanchez 

Manager, Public Relet 
Renee D. Dunn 



PRODUCTION NOTES 



Published by the Port of San Francisco 

Editor: Renee D. Dunn 

Design/Production; 

Wessling Creative, San Francisco 

Photography/Illustration: 
Rick Chapmen, Bob Ecker 
Dvi^ight Eschliman, Thomas John Gibbons 
Marvin Jensen, Ted Kurihoro 
Jennifer Mahoney, Don Moskell 
Tom Paiva, Steve Proehl 
Mark Snyder, Tony Wessling 

Other photography/illustration courtesy of 
AMB Property Corporation , 
Denis Ko Production Hrt 
Gap Inc. , Olin Partnership 
Reputation, LLC, Roma Design Group 
Romoine Photogrophy 
San Francisco Cruise Terminal LLC 
San Francisco Giants 
San Francisco Maritime Not'l Hist Pork 
San Francisco Public Library, SMWM 
Towill, Inc., Wilson Cornerstone Properties 

Printing: Somerset °rinting 



flnnuQl Report | 2000 | PORT fly SAM FKAHCISCO 



-PT. 



NfCISCO 



fl MESSAGE FROM THE MAYOR | 



fls Mayor of Son Francisco, I am honored 
to once again commend the Port of Son 
Francisco for its outstanding accomplish- 
ments during this last year. Throughout its 
history, the Port has consistently worked 
to preserve, restore and develop a careful 
balance of mixed-use developments that 
protect San Francisco's scenic v/aterfront. 
Rs a result of this commitment, the Port 
of San Francisco has emerged as a vital 
force in the economic and cultural fabric 
of Northern California. 

San Francisco's tradition of innovative 
thinking, combined with a strong commitment 
to preservation and restoration, has 
shaped the Port's major development 
projects of this past year. To preserve the 
waterfront's careful balance of maritime 
industry, environmental and historic 
preservation, and public restoration, 



the Port has concentrated on the re- 
development of historic buildings and 
piers. To this end, the Port has commenced 
the rehabilitation of the Ferry Building to 
its former grandeur, the development of 
historic Piers 27/31, and the creation of a 
mixed-use commercial space for non-profit 
art groups within the Pier 70 area. 

fls the Port's waterfront revitalizotion 
comes to fruition, its scenic value and 
lively mix of uses will be a credit to the 
city for years to come. I invite you to 
visit our Port and stroll down the recently 
beautified Embarcodero, ride one of 
Muni's historic street cars through to 
Fisherman's Wharf and enjoy the Port's 
plazas, parks, and piers, which afford 
Son Franciscans and visitors alike the 
opportunity to experience our unique and 
spectacular waterfront setting. 




Willie L. Brown, Jr. , Mayor of Son Francisco 



Annual Report 1 


2000 


PORT OF SAN FRANCISCO 


1 p. 01 





THE SflN FRANCISCO 



The San Froncisco Port Commission is a 
five-member governing board v/ho are 
appointed by the mayor and empov/ered 
to direct and execute programs and 
policies that further the Port's interest 
in world trade. 

The Commission provides vision, leadership, 
and direction to the daily activities of all 
248 Port staff members, v/hile balancing 
the mix of uses that best benefit Son 
Franciscans and meet the mandates of the 
State of California - to promote maritime 
commerce, navigation and fisheries, and 
sustain greater public access. Additionally, 
the Commission v/eighs community 
concerns and convenes regularly to address 
the issues that affect the future of San 
Francisco's waterfront. 

In year 2000, the Commission successfully 
oversaw several multi-million dollar 
development projects that have restored, 
renovated, and revitalized San Francisco's 
historic waterfront. 

The Port Commission and the Bay Conservation 
and Development Commission (BCDC) reached 
on historic agreement regarding land uses 
and development on San Francisco's water- 
front, between Pier 35 and China Basin. 



PORT COMMISSION | 

This agreement is memorialized in the Port's 
Waterfront Land Use Plan, and the BCDC's 
Bay Plan and San Francisco Special Area 
Plan. This means that the two agencies' 
plans are now consistent. 

The Port and BCDC worked closely with 
Save San Francisco Boy, the San Francisco 
Planning Department, Port advisory 
committees and interested public to ensure 
that all points of view were heard and 
considered. The importance of public review 
and the consensus process was reflected 
in the Port and BCDC Commissions' decision 
to establish a joint committee. This joint 
Commission Committee convened several 
successful public hearings and ultimately 
recommended many meaningful amendments 
to the Port and BCDC plans that were 
unanimously approved. 

The Commission also was responsible 
for strengthening international trade 
relations for Son Francisco with other 
prominent ports in Japan, Mexico, China, 
Chile, Argentina, Vietnam, and Canada. 
By building international relationships the 
Commission generates greater demand for 
San Francisco's goods and services and 
facilitates the importation of products 
that are vital to Bay Area consumers. 



Annual Report 1 


2000 


PORT OF SAN FRANCISCO 


1 P-03 





LETTER FROM 

THE EXECUTIVE DIRECTOR 



The first year of the new century was one of 
remarkable progress and economic benefit for 
the Port of San Francisco. In year 2000, the Port's 
revenue totaled $46.0 million compared to $42.7 
million the previous year. With implementation 
of the Waterfront Land Use Plan well underway, 
the Port, in partnership with other City 
departments, has completed several multi-million 
dollar projects on the waterfront. These major 
projects include the Mid-Embarcadero Roadway 
project and Ferry Plaza project, the new public 
access area and plaza at Pier 43 'A in the heart 
of Fisherman's Wharf and the successful 
completion of the China Basin Ferry Landing 
at Pacific Bell Ballpark in time for the Giants' 
Opening Day in April 2000. 

We also have started construction on other 
major projects such as the Son Francisco Ferry 
Terminal and historic preservation of Pier 1, 
the Port's new office headquarters located 
just north of the historic Ferry Building. The 
San Francisco Port Commission has selected 
developers for the Bryant Street Pier Project, 
soon to be San Francisco's new state-of-the-art 
James R. Herman International Cruise Terminal 
and mixed-use facility at Piers 30/32. The 
Commission also has selected developers for 
the Piers I'A, 3, G 5 project, the Broadway Hotel 
project and the Rincon Park and Restaurant 
project, a new two-acre pork that includes 
green open space and restaurant sites 
between Howord and Harrison Streets on The 
Embarcadero. These accomplishments reflect 
the incredible spirit of teamwork by the Son 
Francisco Port Commission, Port staff, our 
tenants, business partners and the community. 




The Port's Real Estate Division had a busy year 
accounting for approximately $36.8 million in 
revenue, up from $33.6 million in 1999. In 
response to a growing marketplace, the Port 
adopted new leasing policies that brought 
tenant rates in line with today's appraisals. 

Increased cargo, cruise, ship repair and harbor 
services accounted for $7.8 million in revenue 
from the Port's Maritime Division, up from $6.9 
the year before. Two new shipping lines began 
calling San Francisco in 2000 including Componia 
Chilendo de Novegocion Interoceanica, S.fl. and 
Polynesia Lines. The San Francisco Foreign Trade 
Zone «3 increased its business significantly 
and began work on their facility's expansion 
at Piers 19/23. find topping it off in one of our 
best years, passenger cruise ships brought 
nearly 75,000 visitors to San Francisco. 

fls I prepare to serve my fifth year as executive 
director of the Port, I look forward to achieving 
even greater successes working under the 
guidance of the San Francisco Port Commission, 
and with the talented and dedicated staff 
that I have grown to greatly trust and rely 
upon. Equally, I am excited about the prospect 
of building even stronger working relationships 
with the Port's customers, tenants, and 
business partners, who I am certain, will join 
us in achieving the Port's mission. 



Douglas F. Wong, 
Executive Director, Port of Son Francisco 



p. 04 



finnud Report 



I 2000 I 



PORT OF SAN FRANCISCO 



KAREN V. CLOPTON, Chief of Operations 

"We are very fortunate to hove such a diverse talented and 
dedicated team of employees v/orking for the Port. My goal is to continue 
to foster interdisciplinary team building, cooperation, and accountability, 
fis public employees, v/e have to make sure the v/aterfront is a safe and 
healthful environment for everyone's enjoyment." 

PETER n. DfllLEY, Director, Maritime — 
"The year 2000 saw the further strengthening of the Port's maritime industries. 
San Francisco Cruise Terminal, LLC was selected to develop a world-class 
cruise terminal at Piers 30/32; the China Basin Ferry Terminal opened 
at Pacific Bell Park; a new floating drydock was acquired for our shipyard; 
construction of the new Hyde Street Commercial Fishing Harbor was well underway; 
and our cargo terminals experienced a significant increase in activity. 
Port staff remains committed to building upon these maritime successes 
and optimistic about our continued growth." 

BENJAMIN fl. KUTNICK, Director, Finance C Accounting 

"The Finance and Accounting Division provides sound fiscal management 
for this self-supporting enterprise. Timely delivery of audited financial 
statements, budgets and financial forecasts together with feasibility 
analysis for real estate leases and development projects, enables the 
Port to fulfill the operating, capital, and facility improvement funding 
requirements necessary to meet the public trust goals of promoting maritime, 
recreational and commercial activities on the waterfront." 

RLEX K. LEE, Director, Engineering G Maintenance 
"The members of the Engineering and Maintenance Division are here to 
enhance and preserve our unique waterfront. Maintaining and improving 
on aging waterfront is an ongoing challenge for the entire division. 
We strive to do our work in a customer-focused, resourceful, accountable 
and efficient manner. Our vision is to see a well-maintained waterfront with 
exceptional amenities for the public's enjoyment. Our staff strives to 
accomplish this vision through their dedication to the Port, their professional 
skills, their craft, and their genuine love for the City of San Francisco." 

THERESR M. PICON, Director, Real Estate 

"The Real Estate Division team is proud to have been the largest single 
contributor of Port revenues in year 2000, registering nearly a ten percent 
increase in revenues over the prior fiscal year. This achievement was 
attained through more efficient property management coupled with the 
utilization of facilities revived through the industrious and creative 
efforts of all Port staff." 

— BYRON fl. RHETT, Director, Planning & Development 

"Though the Planning and Development team's efforts yielded many highly 
visible successes in year 2000, such as the historic preservation of Pier 1 , 
the San Francisco Downtown Ferry Terminus Expansion project and the 
enhanced public access area at Fisherman's Wharf Pier 43'A, probably our most 
significant achievement was through our involvement with the establishment 
of the joint Port/BCDC Special Oreo Plan. The leadership that both the Port 
and BCDC will provide through their synchronized plans will assure a bolonced 
development and use of one of the world's finest waterfronts. " 



OUR FISHING FLEET HfiS R 

NEW HOME AT HYDE STREET HARBOR | 




This year's construction of the Port's Hyde 
Street Commercial Fishing Harbor provides 
San Francisco's fishing fleet with 62 
additional berths from which commercial 
fishermen can homeport their operations. 
Combined with new landside support features 
including a fuel dock upgrade, crew showers, 
bilge pump-outs and other facilities designed 
to implement marina best management 
practices and storm water pollution prevention, 
the Hyde Street Harbor and the Pier 45 Fish 
Processing complex has enhanced Fisherman's 
Wharf's preeminent full-service commercial 
fishing center in North California. 

By listening to the needs of the fishermen 
and addressing them with this $7 million 
investment, Hyde Street Harbor and 
Fisherman's Wharf can fulfill the needs of 
any fishing crew - from safe and efficient 
berthing for more than 190 vessels, to 
fresh ice on which to preserve their catch. 
With this buildout, the Port has further 
demonstrated its commitment to not only 
preserve San Francisco's maritime history, 
but to grow its maritime businesses by 
keeping ahead of the times - something 
that provides the greatest benefit to all 
San Franciscans. 





flnnuol Report 1 


2000 


1 PORT OF SAN FRANCISCO 






THE WATERFRONT 
IS ALIVE WITH PEOPLE 

RTWORKSPLflY [ 




The Port consists of 7.5 miles of Son 
Francisco Bay waterfront which are held 
in "public trust" on behalf of all the 
people of California. The Port seeks 
to maximize revenues through the 
management and development of its 
property for diverse uses in order to 
meet the Port's objective of providing 
public access and enjoyment of the 
waterfront and furthering maritime 
commerce. By working in concert with 
the Bay Conservation and Development 
Commission, Save the Boy, the Son 
Francisco Planning Department and 
concerned citizens, the Son Francisco 
Special Rreo Plan, a blueprint for the 
most economical and ecological use of 
waterfront property has been forged. 
Development of Port properties will 
support the designation of the area 
between China Basin and Fisherman's 
Wharf as a National Register Historic 
District. For example, the San Francisco 
Foreign Trade Zone «3 is expanding 
the historic facilities at Piers 19/23 
into new global trade plaza. Public 
access and the marine environment 
will both benefit greatly from this 
monumental agreement. 




p. 08 



Rnnuoi Report 



I 2000 I 



PORT OF SAN FRANCISCO 



fl DIVERSE FLEET OF SHIPS COURSE THE BRY 





fls the region's bridges ond freeways grow 
more congested and less efficient, San 
Francisco Bay is once again teeming with 
ferry traffic. The Port has responded to 
this need with a $16 million Downtown Ferry 
Terminal to serve the heart of the city at 
the historic Ferry Building, plus a satellite 
China Basin Ferry Landing to serve Mission 
Bay and Pacific Bell Park. Future ferry 
terminal needs are also being considered 
with the creation of the new San Francisco 
Bay Water Transit Authority. Rdd to these 
maritime uses the soon to be constructed 
multi-million dollar International Cruise 
Terminal at Piers 30/32, and it's easy to see 
how magnificent vessels of all persuasions 
will soon be plying the waters around the 
Bay. The benefits will come to citizens and 
businesses in the form of reduced traffic 
congestion and an increase in visitors to 
our City and the waterfront. The Port will be 
bustling with an excitement not seen since 
the golden age of maritime travel early in 
the last century. 



p. 10 I Rnnual Report I 2000 I PORT OF SAM FRANCISCO 



I 2000 I 



i 

I 



THE EMBflRCflDERO IS REUNITED WITH THE CITY 




Since the removal of the old Embarcadero 
Freeway, the historic waterfront district 
containing the Ferry Building and adjacent 
piers has been reinvigorated. This area, 
once a dark and dodgy strip of roadway, 
is now accessible to families and individuals 
24 hours a day. Walking, biking or sailing, 
San Franciscans and visitors can once again 
call the Port their own. Anchoring the 
Port's commitment to public access is its 
own new offices in Pier 1 , which offer a 
public throughway to spectacular vistas of 
the Bay, as well as state-of-the-art public 
meeting spaces. The renovated historic 
Ferry Building will soon host a public market, 
shops and offices while it restores the 
venerable building to its 19th century glory. 





»» v.. 










.funnel 



Hnnual Report 1 


2000 


1 PORT OF SAN FRANCISCO 


1 p. 13 





II 





THE MARITIME INDUSTRY G THE WRTERFRONT COMMUNITY 
FORM fl PARTNERSHIP FOR NEW PROSPERITY 



The Southern Waterfront - San Francisco's 
traditional industrial epicenter -continues 
to be the City's primary location for cargo 
shipping, ship repair, and industrial 
support businesses. 

The Port's maritime future with respect 
to cargo and support industrial services 
looks bright. Import and export shipments 
grew significantly in the past year, and 
the Port's cargo revenues increased by 
an impressive 24 percent. This activity 
created more than 2000 jobs, contributed 
over $15 million in City and State taxes, 
and generated approximately $95 million 
in purchases of local goods and services. 
In addition, two shipping lines signed 
contracts to provide regular service at 
the Port's Pier 80 Omni-Terminal. 



Although historically long the industrial 
maritime heartland, the Southern Waterfront 
also provides a unique opportunity for all 
to explore the wonders of the Bay's rich 
marine ecosystem, while appreciating the 
magnitude of its mighty maritime industry. 

Here Heron's Head Park at Pier 98, a 
scenic 25-acre wetlands preserve and open 
space parcel, hosts a popular and highly 
successful program for San Francisco's 
school children. The Port, local businesses, 
and area neighborhoods are working 
together to ensure that industrial activities 
include modern environmental protection 
measures and best management practices. 
The goal of this partnership is to create 
an economic vitality and new prosperity on 
the Southern Waterfront. 






flnnuol Report 1 


2000 


1 PORT OF SAM FRANCISCO 


1 P 15 







The Port of San Francisco is a public enterprise agency committed to 
promoting a balance of maritime, recreational, industrial, transportation, 
public access and commercial activities on a self-supporting basis 
through appropriate management and development of the waterfront 
for the benefit of the public. 




NJT INCOME 



FINflNCIflL REVIEW 

The Port is a self-stipported enterprise 
department of the City, fill revenues 
generated by the Port are to be used only 
for PO.rt purposes. The Port receives no ' 
operating subsidies from the Gity, qnd 
the Port has no taxing power. 

The Port's revenue is derived primarily 
from property rental to cormnercial and 
industrial ehterprises and from maritime 
operations which include cargo j ship 
repair, fishing, harbor services, cruise 
and other maritime activities. 



the Port posted net income of $11,5 ■ 
million in fiscal year 1999/2000, up $2.7 
million (or 30.4%) from the $8.8 million 
reported for the prior fiscal year, the 
current year's results included. a $1;5 miHiori 
non-operating gain for the recognition 
in FY 1999/2000 of additional insurance ; 
proceeds related to losses suffered by the 
Port as a result of fires in preyipu&.years ' 
at Pier 48 "and the Pier 43 arch. 

fls$ets have been efficiently used to 
provide increased revenue, enabling the 
Port to. improve its facilities, fund . 
capital improvemfent projects and support 
maritime operations! 

Fiscal year 1999/2000 is the sixth consecutive, 
year of steadily.increasing operating 
income. Operating results for the past • 
five years are shown in the table below: 



NET OPERATING INCOME 



( In Millions ) 



$12.0 
$10.0 
$8.0 
$6.0 
$4.0 
$2.6 
$0.0 



$8.5 



$9.5 



$10.2 



$5.3 




+ 




+ 




1995 199& 1997 1998 



+ 



1999 2000 



7 



( Fiscal Yaar laiding June 30 ^' 



. flnhual R6port 1 


2000 


1 PORT OF SAN FRANCISCO . 


1 :p-i7 ■. 







I 


, . . . . ....... . .... 


1 










. • \ ■ ', 




OPERATING REVENUE 


increase iri the collective bargaining 
agreements negotiated on a Citywide 




ribcul ycur upcruiiiiu rcvcriiut; iiicrcudcu.uy 


basis. Higher workers' cbmpensation 




/ . / /o I.U niiiiiufi Tr.uiii million trie 


expenses reflect a rise in the provision for 




pi CVIvfUs yCUl ■ 1 1 icru ILF cube WUb UUC Ul II jCiUUIIY 


workers' compensatioli OS the result of an 




'to revenue growth in the following business 


independent actuarial valuation of the 




scyiTienis. cofTinicrciQi una inuusvrioi reni, 


Port's potential liability. The increase in 




puriviiiy, curyUy uiiu cruhoc. ^umnicrciuruiiu 


depreciation and amortization resulted 




industrial rent'increased 6.9% to $30.3- 


from the completion of several capital 




million due to the effect. of new leosinQ 


projects during fiscal year 1998/99. 1 




activity, higher retail tenont sales, on 






increase in base rents, and the full year 


OTHER INCOME (EXPENSE) 1 




effect of leases that were either in effect 




for only a portion of fiscal year 1998/1999 


n^Koi*Tn/*/MnoiPvi'ionco^ic^\/mi~nll\i 1 
UillCI IIICUIIIC v^ApcilbC?/ lb V/piv-Uliy ■ 




or not scheduled to begin until fiscal year 


coiiipribcu OT inicrcbL inconic, intcrcsi j 




1999/2000.. Cargo revenues increased 


pynpn^^ pnrthniinl^p cinmnn^ p^^npncp i 


— 


24.0% to $2.5 million as a direct result of 


1 cucrui/ b(u Ltr truriri^uuKc ubbibtoncc, 


— 


new business activity, CPr(consumer price 


UilU lllbUlUlii.C piOCCCUb. 1 lie pZaV illllllUIl 


- 


index) adjustments and scheduled rate 


inrrpn<;p in nf'hpr inrnmp Tpynpncp^ mnQi<;f<; . 

II k vVI Id II I^V^IIIC \v "P^l 1 \< Wl Idl 9 L 9 




increases. Parking revenues rose 23.1% to 


of a gain from fire insurance settlements 




$6.5 million as result of higher average 


of $1 6 milli'on and an increase in interest 

V/l ^ A t V lllllll \y 1 1, vi^l Hlvl%v\JUw III lll(.^IWJ^ 




parking meter collections, income from a 


income of $400,000, 




new purKiny lox aajuccnx to xne ooiiporK, 







unu nigner revenues Trom exi>xing parKing - 


BONDED DEBT 1 




lo^c ■ 1*1 11CO' r^x/om IOC in^ro^coH Of\ '^^A* 4*^ 

lU^dk ICVdlUwb IlldCUbCU T\J * J /O LO 


Rt June 30, 2000^ the Porf-s outstanding 




$689,000 due to an increase in the number 


bond debt obligations Consisted of Port 




of rriii^^ roll^ rrnH thf* pffprf nf nn 


Revenue Bonds, Series 1994;. and City and 




increase in the passenger wharfage rote. 


County of Son Frqncisco Harbor Improvement 






^pnprnl Ohlinntinn RnnHc ^prip< fl nnH 




bPERRTING EXPENSES 


CAi^ipc D T'fip Dnrf'^Q mii'c^nnrlinrL KnnW 

IIC3l O » IIIC r \J 1 L 9 UUIV3l.UIIUlll^ Ik^Vil IVJI 




Operating expenses for fiscal year 


indebtedness decreased by $4.0 million. 




1999/2000 increased by 7.7% to $35.7 


or 8.0 percent, to $43.8 million in fiscal 




million from $33.2 million the previous year. 


year 1999/2000. 




The increase is primarily "due to higher 


Net revenue pledged to the Revenue Bonds 




personnel expenses, increased workers' 


is required to be maintained at 1.30 times 




cbmpensation expenses, aind higher 


net revenue available for revenue bond debt 




depreciation and amortization expenses. 


service. Fiscal year 1999/2000 bond debt 




The increase in personnel expenses was 
primarily due to increased staff ihg, and an 


service coverage was 3.76 times, as compared 
to 3.45 times in fiscal year 1998/99. 


■ 





p. IB 



I Annual Report I 2000 I 



PORT OF SAN. FRANCISCO 



BRLflNCE SHEET 



June 30, 



2000 



1999 



ASSETS 

Current Assets: - ' 

Cash and investmehts, held in City Treasury 
. -Port operating fund 
Cash outside City Treasury 
Receiyablesr- Net • ."■ 

Moterials and supplies 
Prepaid insurance and other assets 



43,233 
S 

12,103 
■1,149 
- 291 



Total current assets . 



56,781 



Restricted Assets: 

Cash held in City Treasury: ' 

Lessee deposits 

Capital outlay 
Cosh and investments, held by Trustee 
- Bond interest and redemption ' 
Other - Lessee deposits 



2,774 
2,453. 

9,643 
1,095 



Total restricted assets 



15,965 



Property, Plant, ond Equipment - Net 



220,176 



Other Assets 



8, 565 



Total assets 



301,487 



LIABILITIES AND EQUITY 

Curren-t Liabilities Payable from Current Assets: 

Accounts payable and accrued liabilities , 
Current maturities of long-term obligations 
ficcrued interest payable 



10,336 
2,437 
21,3 



Total current liabilities 



12,986 



Current Liabilities Payable from Restricted Assets: 

Current maturities of revenue bonds 
Accrued bond interest payable 
Lessee deposits 

Deferred grants . • ; ; . 



.3,085 
1,197 
3,869* 
12 



TotoH payable. from restricted assets 



8,163 



Deferred Revenue- Net of current portion 



4,243 



Long-term Obligations - Net of current maturities 



48,841 



Total liabilities 



74,233 



Equity: 

" Contributed" capital ■ 
.Revaluation of property 
Retained earnings 



26,015 

56,063 
145j.l76 



Total equity. 



227,254 



Total liabifities and equity. 



301,487 



41,041 
5 

7*845 
■1,226 
300 



50,417 



.2,484 
6,803 

9,577 
1,111 



19,975 



211,738 



5,586 



287,716 



8,927 
2,400 
, 220' 



11,547 



.2,930 
1,274 
3,595 
38 



7,837 



4,433 



53,653 



77,470 



21,101 
56,063 
133,082 



210,246 



287,716 



' Annual Report 



I 2000 ■ I 



PART of SAN FRANCISCO 



p: 19 



Copies of the Port's complete 
finonciol stotements and 
independent auditor's report 
moy be obtained for $2.50 
.from the Accounting Monoger, 
Port of San Froocisco. Pier i . 
Son Francisco . Cfl 94 n i 



STATEMENT OF INCOME 



Years Ended June 30, 



2000 



1999 



Operating Revenues: 

Commercial and industrial 

Parking 

Cargo 

Fishing 

ship reparr . 

Harbor services 

Cruise . 

Other maritime 

Other 



Total operating revenues 



30,287 


$ 28,331 


6,548 


5,320 , 


2,462 


1,986 


1,329 • 


1,23"? 


1,000 


959 


817 


790 


689 


362 . 


l-,562 


1,609 


. 1,335 


2,145 


46,029 


42,741 



Operating Expenses: 

Operations and maintenance 
Depreciation and amortization 



29,052 
6,728 



26,820 
6,393 



Total operating expenses 



35,780 



33,213 



Operating income 



10,249 



9,528 



Other Income (Expense): 

Interest and investment income 
Interest expense 
Other non-operating income 
Other non-operating expense 
Gain from fire insurance settlement 
Gain (loss) on disposition of assets 



3,098 
(3,595) 
485 
(485) 
1,759 
16 



.2,687 
(3,541) 
2,137 
(2.137) 
174 
(9) 



Total other income (expense) 



1,278 



(689) 



Net income 



11,527 



8,839 



STATEMENT OF EQUITY : -( ?j?5>M;gj?j? X 





Years Ended June 30, 2000 and 1999 


Contributed 
Capital 


Revaluation 
of Property 


Retained 
Eqrnings 


Total 
Equity 






Balances as of June 30, 1998 ' 

Capital grants 

Other contributions 

Depreciation on fixed assets 
acquired from or constructed 
through capital grants and 
other external sources that 
reduces contributed capital 

Net income for the year 
ended June 30, 1999. 


$ 20,347 
322 
■ 1,000 

(568) 


$ 56,063 


$ 123,675 

568 
8,839 


$ 200,085 
322 
1,()00 

8,83'9 






Balances as of June 30, 1999 . 

Capital grants 

Depreciation on fixed assets 
acquired from or constructed 
through capital grants and 
o,ther external sources that 
reduces contributed capital 

Net income for the year 
ended June 30, 2000 


21,101 
5,481 

(567) 

• 


56,063 


133,082 

567 . 
11,527 


210,246 
5,481 

11,527 






Balances as of June 30, 2000 


$, 26,015 


: $■ 56,063 


$ 145,1.76 


$ 227,254 





p. 20 1 


nnnual Report 1 


20Q0 


PORT OF SAM FRANCISCO 





1 
















— — ^ 

Years Ended June 30, 


2000 . 


1999 






Cash Flows. from Operating Activities: 

Cash received from tenants for rent . . , • 
Cash received from customers 

Deposits received from tenants and customers ■ ' 

Cash paid to employees for services 

Cash paid to suppliers for goods Cind services 

Cash paid for quasi-external transactions 

Customer deposits returned 


• $ 39,50fi 
5,631-. 
593 

(3,837) 
(7,251) 
. . (303) 


$ 35,377' 
5,512 
556 

. (4,124) 
(5,581) 
(413) 






Net cash provided by operating activities 


18,04.4 


17,488 






Cash Flows from. Nbncapitol Financing Activities: 

Proc.eeds from operating grant 
Operating grant expended 
Proceeds from disaster assistance 
Earthquake and storm damage repair expenses 


.(26) 
■ 1,329 
(1,936) 


oUU 
(624) 
925 
(1,401) 






Net cosh used for noncapital financing activities 


(583) . 


(500) 






Cash Flows from Capitol and Related Financing Activities: 

Acquisition and construction of property, plarit and equipment ■ 

D,redging costs incurred ■ 

Additions to Waterfront land use plan - 

Capital grants received:. 
. Contributed capital other than from grants 

Net insurance proceeds from fire casualties 

Proceeds from loan 
' Payment from City for real property rights 

Principal payments on long-term debt ■ 

Intisrest payments on long-term debtt - 
■. Interest expense capitalized •. 
' Interest income capitalized . ; 

Proceeds from sale of materials « " - ' . 


(11,992) 
(3,536) 
(221) 
1,735 . 

413 

(5,347) 
(3,477) 

(8) , 

16 


(7,986) 
(1,891) 
(204) 
.297 
1,000 
■ 174 

. ■ 8,524 

(5,1.85) : 

(3,249) 
(264) . 
202 
18 




— 


Net cash used'for capital and related financing activities 


(22,417) . 


(8,564) 






Cash Flows from Investing Activities: 

Interest income received 

Investments sold (purchased) by Trustee 


3,450 
5,361 


2,870 
(5,361) 






Net cash provided by (used for) investing activities 


. 8,811 


(2,491) 






Net Increase in, Cash and Cosh Equivalents ' 
Cash and Cosh Equivalents: 

Beginning of year ' 


3,855 
54,549 


5,933 
■48,616 






End of year 


$ 58,404 


$ 54,549 





flnnuql Report 1. 2000 I PORT OF SAH FRANCISCO I p- 21 



I 2000 I 



StflTEMENT OF CASH FLOWS ^ 



Years Ended June 30, 



2000 



1999 



Noncash Noncapital Financing Activities: 

Earthquake damages and pxpenses included in 
accounts.payable and acfrued liabilities 
Noncash Capital and Related Financing Activities: 

Building (tenant) improvements financed by rent credits 
Acquisition and construction of property, plant and equipment 

included in accounts payable and accrued liabilities . 
Requisition of equipment under capital lease ' 
Noncash Investing Activities: 

Change in fair value of cash and investments held in City Treasury 



203 

446 • 

2,890. 
200 

(296) 



. 183 



528 



370 



(364) 



Reconciliation of Net Income to Net Cash 
Provided by Operating Activities: 

Operating income 

fldjustme.nt to reconcile operating income to net cash 
provided by operating activities: 
Depreciation and amortization 
Change in allov/ance for doubtful accounts 
Net change in deferred revenue 
Changes in assets and liabilities:. 
(Increase) decrease in: 
Receivables 
Materials and supplies 
Prepaid insurance and ather assets 
Increase in: ■ 

Recounts payable and accrued liabilities 
Lessee deposits 



ia,.249 



6,728 
(52) 
(532) 



(305) 
77 
699 

• 890 
290 



9,528 



6,393 
46 
(187) 



(220) 
(146) 
153 

1,:777 
144 



Net cash provided by operating activities 



$ 18,044 



$ 17,488 



Reconciliation of Cash and Cosh Equivalents 
to the Balonce Sheet: . 

. Cash and investments held in City Treasury- Port operating fund 
Cash outside City Treasury 
Cash held in City Treasury: 

Lessee deposits 

Capitol outlay • 
Cash held by Trustee - Bond interest and redemption 



$ 43,233 

,5 

2,774 
2,453 
9,643 



$ 41,041 
5 

2,484 
6,803 
4,216 



Add - Change in fair value of cash and investments 
held in City Treasury 



58,108 



296 



54,?49 



Cosh and cosh equivalents 



$ 58,404 



$ 54,549 



p. 22 I nnnuiorReport I ' 2000 I PORT OF SAM FRANCISCO 



1 ^ BnnuiorReport j ' 2000 j 



-I — ( 




Director, EnQinecru 

nlex K, lee 
Director, Finance £ flccot 

Benjamin fl. Kutntck 
Director, Real f ttote: 
TtierMO M, Picon 
Ceneral Counsel: Noreen nmbrosa 
Manager, Public Relotions: 

Ren^e D. Dunn 
Manoger, Coveminent flffoirs (acting); 
Imoni S. Hoygood 



PRODUCTION note; 



) 



Editor: Rene? D Uu-r< ^ 

Contritiul Iditor. G. L. Roybol 

Contributing wnirri 

louiSA flntlei-ion, St?phon'(> Do^m-i-!, 
NltO Milushima, D.dup Ostmnj 

Oesign/PriduttiL-n 

W^stlin,} Crcot'Ve, Son franciico 

Photpgrciphy/lUiist rotion: 

Pobfft Cam''r,-,i\, fttckchopson. 
Bob f cker, Dwight Ischilmon, 
Ted Kijnhora, To« Poiva, 
Dtirry froger, Mark Snyder 

other Photogr.ipby/ 

Illu-itinliod-, idU-tesy of. 

San frnnci'ro CrkKse Ir'iDin.ii UC, 

Convent. en (iVi»tlor> Hurr.io 



PORT OF SAN FRANCISCO 




J. 

PORT-__ 

SAN FRANCISCO 



I 



E 



As Mayor of San Francisco, it gives 
me great pleasure to reflect on anoth- 
er year of stimulating and successful 
developments at the Port of San 
Francisco. For some time we've wit- 
nessed the revitalization of the City's 
gateway to the Pacific. Now more 
than ever, the intelligent, dedicated 
planning of Port management brings 
us closer to the goal of reuniting San 
Francisco with its historic waterfront. 

Since 1775, when the first commercial 
fleets sailed through the Golden Gate, 
San Francisco has been the commer- 
cial center of Northern California. 
While the City still boasts one of the 
most varied commercial maritime 
portfolios of any U.S. port, today's 
waterfront community has transcend- 
ed into a landscape of thriving retail 
businesses and restful places to enjoy 
the nature and beauty of the Bay. 



The Port strives to preserve the care- 
ful balance of innovative development 
and a commitment to restoration and 
preservation. One of the most eagerly 
anticipated objectives of San 
Francisco's Waterfront Land Use Plan, 
the renovation of the Ferry Building, is 
now underway. The return of the Ferry 
Building to its historic role as a 
bustling transportation hub continues 
to shape the City's waterfront into a 
proud civic achievement. 

I encourage San Franciscans and vis- 
itors alike to visit the redesigned 
Embarcadero corridor. Be a part of 
the City's picturesque waterfront and 
take notice of the exciting changes to 
come. 

Willie L. Brown, Jr. 



Mayor of San Francisco 



"As we undertake increased security measures in connection 
witti cruise, cargo and otiier maritime travel, we are especially 
aware of the Port's position as an important provider of public 
service to a growing global community. " 

Kimberly K. Brandon, San Francisco Port Commission 



THE SAN FRANCISCO PORT COMMISSION 








T 

\ 


i 



Brian McWilliams - Vice President 



Michael Hardeman - Commissioner 




Pius Lee - Commissioner 



Denise McCarthy - Commissioner 



The Port of San Francisco is governed by a five member board of commissioners, 
each of whom is appointed by the mayor and subject to confirmation by the 
City's Board of Supervisors. Each commissioner is appointed for a four year 
term. By charter, the Port Commission is charged with the "...power and duty 
to use, conduct, operate, maintain, manage, regulate, and control..." the Port 
of San Francisco. 



MBERLY K. BRANDON, PRESIDENT 




Fiscal 2001 marks a landmark year in 
San Francisco Port development and, 
unfortunately, a destructive year for 
one of our nation's most celebrated 
and admired ports. 

We would like to express our condo- 
lences to the Port Authority of New 
York & New Jersey for the senseless 
and tragic events of September 11 th. 
More than sixty members of the Port 
Authority were lost in that event. As 
members of the American Association 
of Port Authorities, we have come to 
know and love many of the Port 
Authority of New York & New Jersey 
officials and staff. The loss is devas- 
tating, but we know that they will rise 
above the ashes into a stronger body. 
We applaud their courage in the face 
of adversity. 

And, for Port of San Francisco staff 
members who may have been per- 
sonally or indirectly affected by the 
tragedy, we extend our support. We 
also share in the sense of loss, grief 
and anger of all Americans. 

We are fortunate to have the unbridled 
leadership of Mayor Willie L. Brown, Jr. 
as an example of vision and commit- 
ment. We also commend our staff for 
carrying out their duties in a responsi- 



ble and professional manner during a 
time of considerable challenge to us all. 

We also want to thank Port staff and 
the many volunteers who have partici- 
pated in the numerous community 
advisory committees. These ad hoc 
bodies are critical to the Port's future. 
They have created an interactive rela- 
tionship between the Port and the 
communities we serve. Over the 
years, these dedicated men and 
women have given hundreds of hours 
of their time and unmeasurable 
amounts of energy to help plan and 
shape our magnificent waterfront. You 
are part of history and your dedication 
is reflected in the beauty and accessi- 
bility of this internationally admired 
mixture of maritime, recreation and 
development. 

I invite you to visit our Port and expe- 
rience the diversity and beauty of our 
plazas, parks, and maritime facilities. 
Come see for yourself how exciting 
and vibrant our revitalized waterfront 
has become. , ^ 



Kimberly K. Brandon 



3 



For the past five years, I've had the 
enviable opportunity to preside over 
one of the City's most prestigious and 
enduring landmarks- the Port of San 
Francisco. 

During my tenure, the Port continues 
to undergo an exciting transition. The 
landmark Waterfront Land Use Plan, 
adopted by the Port Commission in 
1997, has accelerated this transition. 
As promised, it has reawakened and 
revitalized the Port through an intri- 
cate series of programs that have 
expanded maritime operations and 
created new public access, entertain- 
ment, recreation and open space 
along the Bay. 

The year has been one of notable 
accomplishments. In February, man- 
agement and staff moved into the 
Port's new headquarters at Pier 1. It's 
a beautiful transformation of a dilapi- 
dated shed and bulkhead building 
into a modern, award-winning office 
complex. In March, the 103 year old 
Ferry Building began what is perhaps 
one of the most comprehensive reno- 
vations of any historic landmark. And, 
a measure approved by the governor 
late in the year funds continued plan- 
ning for a signature passenger cruise 



terminal- the James R. Herman 
International Cruise Terminal. But this 
is just the tip of the iceberg. As you'll 
see on the following pages, all sec- 
tors of our multifaceted entity have 
exhibited significant growth. 

Despite a lagging economy, com- 
pounded by the tragic events of 
September 1 1th, the Port of San 
Francisco safely, securely rests on a 
solid fiscal foundation. For fiscal year 
2000/2001, the Port reported revenue 
growth for the fifth consecutive year. 
Operating revenue increased 9.4% to 
$50.3 million from the $46.0 million 
posted for the previous year. 

As I enter my sixth year of service to 
the Port, I am proud to have piloted 
an entity that continues to sustain a 
rate of growth that outpaces that of 
the state and the nation. I would like 
to thank the Port Commission as well 
as my staff for their efforts in making 
fiscal year 2000/2001 another banner 
year. 

Douglas F Wong 




In addition to its extensive maritime activities, the Port is a thriving city within a 
city with commercial, industrial, retail, cultural, historic and recreational entities 
spread along its 7V2 miles of San Francisco waterfront. 



Mission Statement 

The Port of San Francisco is a public 
enterprise committed to promoting a 
balance of maritime, recreational, 
industrial, transportation, public 
access and commercial activities on a 
self-supporting basis through appro- 
priate management and development 
of the waterfront for the benefit of the 
public. 

Priority Guidelines 

The following newly developed Priority 
Guidelines are designed to support 
the Port's strategic plan and ensure 
that priorities are executed in the most 
efficient and effective manner. 

Safety and Health 

Dangerous Conditions 
Environmental - air and water 

quality 
Code compliance 



Public Interest Mandate 

Trust for the people of the 

State of California 
San Francisco residents 
Maritime uses (including transit, 
i.e. ferry) 

Waterfront Management 

Waterfront Land Use Plan 
5-year business plan 
Public access and recreation 

Private Interest 

Maritime (cargo) 

Trust uses that attract people to 
enjoy the waterfront (e.g. restau- 
rants, tenants serving the public) 

Interim or ancillary commercial 
uses (e.g. non-maritime office) 

Revenues 

Sustainability - short and long term 
Maximize revenue stream with 

acceptable risk 
Economic impact - employment 
opportunities, creation of jobs, 
and economic development 



"l/l/e are truly blessed to be the gatekeepers for the safety and 
security of the waterfront. Our job is to make sure that Port staff 
are well-trained, fairly evaluated and working as an efficient and 
collegial team. " 

Karen V. Clopton, Chief of Operations 




6 



OPERATIONS 



Without a doubt, the Port of San 
Francisco maintains one of the most 
diverse business portfolios of any port 
in America. In October 2000, the 
Operations Division was formed, pri- 
marily to harness and nurture the non- 
tangible resources that are utilized in 
managing this portfolio - the talents 
and knowledge of its people. 

Human Resources; Communications; 
Government Affairs; Environmental 
Health and Safety; Information 
Services; Business Services; Finance 
and Accounting comprise the 
Operations Division, and serve to 
make the Port an exciting place to 
work. 

In January 2001, the Operations 
Division launched our Team Effective- 
ness Program. At the heart of the pro- 
gram are interdisciplinary teams 
assembled to maximize the full 
resources of the Port on what once 
were chiefly intra-divisional assign- 
ments, projects or tasks. In an eco- 
nomic climate where excesses cannot 
be tolerated, the results of the pro- 
gram have been remarkable. 

The Pier 45 Shed C Development 
Project is a model example of this 
cross-functional team approach. 




This team with representation from 
each Port division, meets on an ongo- 
ing basis to design and implement a 
new fish processing facility at Pier 45 
Shed C. The new state-of-the-art 
facility will meet the changing and 
growing needs of San Francisco's 
fishing industry at Fisherman's Wharf. 
By coming together and working as a 
team that understands all aspects of 
the project, the Port is well underway 
toward making this facility, that is so 
important to the fishing community, a 
reality, on time and within budget. 

This division also oversees and pro- 
vides many support functions to all 
aspects of the Port and implements 
programs that develop and enhance 
the staff's professional skills. In addi- 
tion, we provide the technology and 
cutting-edge communications that 
allow the Port to achieve its objectives 
and fulfill its mission. 

On a broader scale, the Operations 
Division also monitors compliance 
with local, state and federal health 
and safety requirements and ensures 
the quality and safety of the lands, air, 
and waters that make up the Port of 
San Francisco. 



"For over 150 years San Francisco's maritime industries hiave 
provided economic benefit to tlie residents of tfie Bay Area, 
Caiifornia, and beyond. Tiie Port's ongoing mission is to protect 
and eniiance its maritime resources, and to ensure ttiat tliis 
legacy continues. " 

Peter A. Dai ley. Director, Maritime 




During fiscal year 2001 , the Maritime Division 
concentrated - witin great success - on 
many of its traditional industries, including 
cargo and cruise shipping, harbor ser- 
vices, commercial fishing, ferries/excur- 
sions, and ship repair. 

Under the direction of the Port Commis- 
sion and the newly formed Maritime 
Commerce Advisory Committee, a mar- 
itime cargo and industrial use study was 
completed. This study assessed the 
Port's existing and projected facility 
needs, identified maritime marketing 
opportunities, and endorsed continued 
diversification, such as the development 
of assembly and distribution facilities 
and the expansion of bulk and breakbulk 
cargo operations. It will serve to guide 
the future allocation of Port properties for 
maritime uses and support services, and 
will allow these industries to better com- 
pete in the broader market place. 

The Port entered into new agreements 
with three bulk cargo tenants in 2001. 
Through substantial investments in con- 
veyors and equipment, the Port and 
these tenants significantly improved San 
Francisco's bulk cargo handling capabili- 
ties. These three agreements alone are 
expected to yield half a million tons of 
cargo annually. Overall, cargo revenue 
for the year was up 23%. 



In June, the Port opened Hyde Street 
Harbor, a 62-berth commercial fishing 
marina adjacent to Fisherman's Wharf 
and the Pier 45 fish processing center. 
The $7 million project offers many 
amenities for the fishing fleets and their 
crews, including an upgraded fuel 
dock, restrooms, hot showers, and 
dedicated parking. Environmental pro- 
tection was improved through the in- 
stallation of bilge and sewage pump- 
out stations and an oil recycling station. 

Bay Area ferryboat commuting is 
expected to increase threefold over the 
next ten years. With this in mind, the 
Port opened a new two-berth ferry 
landing, with a second, similar landing 
due to be completed in early 2002. 
These terminals provide the public with 
covered facilities, promenades featur- 
ing spectacular waterfront views, and 
are fully accessible. Further south, ferry 
ridership is growing due to this year's 
successful operation of the China Basin 
terminal, adjacent to Pacific Bell Park, 
the home of the San Francisco Giants. 
Currently 7% of the Park's attendance 
utilize ferries. 

After another successful year, the 
Maritime Division is prepared to face 
the challenges ahead with renewed 
commitment, improved facilities, and 
stronger customer relationships. 



9 



"With an eye to the future, the Planning & Development team 
oversees a range of complex mixed-use development, historic 
preservation, and open space projects. Through extensive 
community involvement and public/private partnerships, 
our team is working towards a revitalized and self-sufficient 
waterfront for years to come. " 

Byron A. Rhett, Director, Planning & Development 



Reflecting the Port's commitment to 
historic preservation, a major restora- 
tion of the Ferry Building area- the 
functioning and symbolic "heart" of 
the waterfront -is well underway. 
Scheduled for completion in Fall 
2002, the Ferry Building will boast a 
new public marketplace, state-of-the- 
art office space, and upgraded and 
expanded ferry terminal facilities. 
Anchoring the Ferry Building is the 
new Harry Bridges Plaza and the 
Embarcadero Roadway, complete 
with granite paving, palm trees, dra- 
matic lighting, and a new transit stop 
for the historic "F-Line" trolleys. 

In Summer 2001 , the Port and AMB 
Property Corporation completed the 
Port's new headquarters at Pier 1 , a 
magnificent renovation of the dilapi- 
dated historic shed and bulkhead 
building into modern office space, 
complete with an acre of perimeter 
public open space. Pier 1 received 
the Award for Excellence from the 
Urban Land Institute for being the 
"best rehabilitation project in the 
world" for 2001. 



The Port also is partnering with a pri- 
vate development team for the historic 
preservation and reuse of Piers 1 V2 - 
5, which will include restaurants and 
cafes, public access, office space, a 
public marina and water taxis. 

Just south of the Ferry Building, con- 
struction is underway on the new 
waterfront Rincon Park- a two-acre 
landscaped park with lawns, sweep- 
ing views of the Bay and Bay Bridge, 
and sculpture. 

Beyond the Ferry Building area, the 
Port is proceeding with plans for a 16- 
acre, mixed-use cruise terminal devel- 
opment in South Beach and a mixed- 
use recreation and historic preserva- 
tion project at Piers 27 - 31 in the 
northeast waterfront near Fisherman's 
Wharf. 

Integral to all Port planning and devel- 
opment projects is the close coordina- 
tion and collaboration with its commu- 
nity advisory groups and other City 
departments which provide input and 
guidance on planning and develop- 
ment of projects along the waterfront. 



"Over 130 professional engineers and skilled craftspersons take 
pride In keeping the waterfront a vital link to the City. Our work 
preserves and Innproves fishing harbors, ferry landings, public 
parks, cargo terminals, and even a baseball stadium. With some 
facilities approaching their 100th year of service, we are chal- 
lenged, but remain constantly Innovative and extremely flexible." 

Alex K. Lee, Director, Engineering & Maintenance 



In this past year, the Engineering & 
Maintenance Division oversaw, among 
others, these major accomplishments: 

Downtown Ferry Terminal - The south- 
ern half of the Port's new Downtown Ferry 
Terminal was completed. This new termi- 
nal, Gate E, situated on the south side of 
the Ferry Building will accommodate all 
east and southbound commuter ferry traf- 
fic. A new terminal situated north of the 
Ferry Building will open in early 2002 to 
serve the northern routes. These terminals 
will more than double the ferry docking 
capacity in the central downtown area, 
which already services nearly 15,000 pas- 
sengers daily According to the San 
Francisco Water Transit Authority which is 
currently assessing the feasibility of Bay 
Area ferry traffic, ridership will triple over 
the next ten years. The Downtown Ferry 
Terminal is designed to accommodate this 
level of growth through the addition of up 
to ten berths. 

Ferry Building - For the first time since 
its original construction in 1898, the skin of 
the historic Ferry Building was removed 
revealing its elegant framework. This his- 
toric renovation will be completed at the 
end of 2002 and offer Class A office 
space on the upper floors and world 
famous restaurants, a gourmet farmer's 
market, and public ferry passenger gath- 
ering spaces on the ground level. 



Piers 1 V2 - 5 - The marginal wharf 
repair on Pier 3 was completed in a 
timely fashion. Designs are being pre- 
pared by a developer for an upgrade of 
the entire area. Piers 1 V2 - 5 that will fea- 
ture cafes, recreational and dinner 
cruise docks, public access, open 
space, offices, and more. 

Pier 34 - While the Port's jurisdiction 
comprises 7 V2 miles of world-renown 
waterfront, it is always looking to 
enhance and improve its assets. Our 
removal of the old Pier 34 opened the 
central waterfront, but we hold further 
plans to remove additional nearby aging 
structures and build out the Brannan 
Street Wharf. We anticipate that the cen- 
tral waterfront will be a fitting future 
home for the new James R. Herman 
International Cruise Terminal. 

Pier 48 - In the southern waterfront, 
more than 180,000 square feet of prime 
covered warehousing will soon come on 
line due to our engineering and mainte- 
nance efforts, after a tragic fire gutted 
this facility several years ago. The newly 
renovated pier will benefit from a seismic 
upgrade, the installation of sprinklers 
and a fire main, new accessible bath- 
rooms, and improved lighting. 



"In these challenging economic times, the Real Estate Division 
remains committed to its mission of generating maximum rev- 
enues and enhancement of the Port's real estate assets. This 
mission is achieved by providing superior property and asset 
management services through inter-divisional cooperation , 
support and teamwork. " 

Theresa M. Picon, Director, Real Estate 




The Real Estate Division accounts for 
more than 79% of the Port's total rev- 
enue. For fiscal year 2000/2001, Real 
Estate related revenues increased by 
9% to $40,179,000 from $36,835,000 
over the previous year. The increase 
was due primarily to a strong real 
estate market and a proactive staff of 
dedicated real estate professionals. 

Commercial and industrial rents 
increased by 5.6%. This increase 
reflects a combination of new and re- 
negotiated leases, scheduled rent 
increases and higher percentage 
rents from restaurant and retail sales. 
Parking revenues increased 25%. 

Significant new leases that contributed 
to this increase in revenues included: 
IDEO and San Francisco Municipal 
Transportation Agency (MUNI). Re- 
negotiation of leases also greatly 
enhanced this years' revenues. 

Additionally, Real Estate staff was 
instrumental in negotiating a number 
of important maritime leases includ- 
ing: Bode Gravel Company/Mission 
Valley Rock, Pacific Cement and 
Signature Yachts. 



Real Estate staff concluded negotia- 
tions with MUNI for the transfer of 17 
acres of Port property upon which 
MUNI plans to construct the MUNI 
Metro East Maintenance Facility. The 
property transfer generated $25.7 mil- 
lion in income and a $4 million contri- 
bution toward the construction of the 
Illinois Street Bridge. 

Special events held on Port property 
encouraged the public to visit San 
Francisco's beautiful waterfront, most 
notable of which included: The 2001 
Grand Prix Bicycle Race, Harry 
Bridges Plaza dedication ceremony, 
the annual Fourth of July fireworks 
display along the waterfront, and of 
course the San Francisco Giants com- 
pleted their second full season at 
Pacific Bell Park, as did Teatro Zin 
Zanni, a cabaret-style dinner show at 
Pier 29, one not to miss. 



5 



The Port is a self-supporting enter- 
prise department of the City. All rev- 
enues generated by the Port are to be 
used only for Port purposes. The Port 
receives no operating subsidies from 
the City, and the Port has no taxing 
power. Its revenue is derived primarily 
from property rental to commercial 
and industrial enterprises; and from 
maritime operations which include 
cargo, ship repair, fishing, harbor 
services, cruise and other maritime 
activities. 

Change in Net Assets 

For fiscal year 2000/2001 the Port 
reported an increase in its net assets 
of $42.3 million. This compares to a 



$17.0 million increase in net assets 
posted in the previous fiscal year. The 
increase in net asset growth reported 
for the current fiscal year was a direct 
result of a $29.7 million payment from 
a City department to use an approxi- 
mate 17 acre land parcel in perpetuity 
(described in more detail below), and 
a $5.5 million increase in capital grant 
and contribution revenues received 
during the current fiscal, as compared 
to the previous year. These increases 
more than offset a $4.2 million year- 
over-year decline in operating income. 

Operating results for FY 2000/2001 
and the prior fiscal year are shown in 
the table below: 



(in Thousands) 

Years Ended June 30, 2001 2000 

Operating Revenue $50,345 $46,029 

Operating Expenses (44,285) (35,780) 

Operating Income 6,060 10,249 

Other lncome/(Expense) (408) 1,278 

Capital Grants & Contributions 10,978 5,481 

Payment for Rights in Perpetuity 25,700 



Change in Net Assets 



$42,330 



$17,008 




Operating Revenue 

Fiscal year operating revenue increased 
9.4% to $50.3 million from the $46.0 
million posted for the previous year. 
The increase was due principally to 
revenue growth in the commercial and 
industrial rent, parking, and cargo 
business segments. 

Commercial and industrial rent rose 
5.6% to $32.0 million due, in large 
part, to a combination of new and 
renegotiated leases, scheduled rent 



increases, and higher percentage 
rents from restaurant and retail sales. 
These increases more than offset $1.9 
million in lost rents resulting from the 
termination of leases at the Ferry 
Building (due to a historic restoration 
and redevelopment of the structure). 

Parking revenues increased 25.1% to 
$8.2 million due principally to the full 
year operation of the parking lot at 
China Basin, including its expanded 
use for commuter parking, and an 
increase in parking meter revenues. 




Cargo revenues increased 23.3% to 
$3.0 million as a direct result of new 
business and higher maritime facility 
revenues. 

Operating Expenses 

Operating expenses for fiscal year 
2000/2001 increased by 23.7% to 
$44.3 million from $35.8 million the 
previous year. The increase primarily 
reflects higher personnel costs, 
increased payment to the City for 
services provided to the Port by other 
City departments, office rent expense 
for the Port's new administrative 
offices at Pier 1, increased mainte- 
nance dredging expenses, higher 
costs for materials and supplies, and 
increased utility costs. The increase in 
personnel costs is due to increased 
staffing, scheduled salary increases 
related to collective bargaining agree- 
ments negotiated on a city-wide 
basis, and staff promotions and posi- 
tion reclassifications. The increase in 
utility expenses resulted from increas- 
es in gas and electric rates. 



Revenues From Capital Grants, 
Contributions and Other Sources 

Capital grants and contributions pri- 
marily consist of funds received or 
due from federal and state granting 
agencies which provide funding for 
many of the Port's capital projects. 
Funds received from capital grants 
and contributions increased 100.3% 
to $1 1 .0 million from $5.5 million the 
previous year. The increase was the 
result of funds received for construc- 
tion on the Downtown Ferry Terminal 
Project. Approximately $9.0 million of 
grant funds were expended on this 
project during fiscal year 2000/2001. 

During fiscal year 2000/2001 the Port 
recognized $25.7 million of $29.7 mil- 
lion which the Port received from the 
San Francisco Municipal 
Transportation Agency (MUNI) as 
payment for the permanent right of 
MUNI to use an approximate 17-acre 
parcel of the Western Pacific Railroad 
Yard site for their Metro East 
Maintenance and Operations Facility. 



The remaining $4.0 million is restrict- 
ed as to its use; and, as such, recog- 
nition of these funds is being deferred 
until such time as the monies are 
spent on their intended purpose. 

Bonded Debt 

At June 30, 2001 , the Port's outstand- 
ing bond debt obligations consisted 
of Port Revenue Bonds, Series 1994; 
and City and County of San Francisco 
Harbor Improvement General 
Obligation Bonds, Series A and 
Series B. The Port's outstanding bond 
indebtedness decreased by $4.2 mil- 
lion, or 9.6%, to $39.6 million in fiscal 
year 2000/2001. 

Net revenue pledged to the Revenue 
Bonds is required to be maintained at 
1 .30 times net revenue available for 
revenue bond debt service. Fiscal 
year 2000/2001 bond debt service 
coverage was 3.02 times, as com- 
pared to 3.76 times in fiscal year 
1999/2000. 



Audited Financials 

Copies of the Port's complete financial 
statements and independent auditor's 
report may be obtained for $5.00 from 
the Finance Manager, Port of San 
Francisco, Pier 1, San Francisco, CA 
94111. 



(in Thousands) 



Years Ended June 30, 


2001 


2000 


Assets 






Current Assets: 






Cash and investments held in City Treasury - Port operating fund 


$70,706 


$43,233 


Pach ni itcirip Pit\/ Trpaci ir\/ 
Oaol 1 UULolUt. L'liy licaoUiy 




D 


Rpppu/ahlpc - npt 


7 AQd 


1 c., 1 UO 


N^atprialc anH ciinnlipc 
ivialcl idlo ai lU oUpfJllco 


1 1^1 

1 , 1 O 1 


1 ^AQ 


Prpn^iiH inciir^inrp ^nri nthpr PQQPtc 

rit;|JalU II loUl ClI lUc al lU UMICl aooC-Lo 


J JO 


CO 1 




7Q QOQ 


Sfi 7R1 








Oaol 1 I IcIiJ III L-ILy llcdoUiy. 






1 pccpp Hpnncitc 




9 77 A 


P?initpl ni itlp\/ 
wa|jiLcii uuiiciy 


1 7fifi 


9 453 


P^iQh pnri in\/PQtmpntQ hplH h\/ Tri iQtpp - RrinH intprpQt ^nr\ rpHpmntinn 

wClol 1 al lu If IVt-oU 1 Id ILo 1 IClU Uy 1 1 UolcC DUMU II IIC-I Vol al lU 1 CUC-1 1 ijJUUI 1 


Q 71fi 




Other - Lessee deposits 


1,047 


1,095 


Total restricted assets 


15,812 


15,965 


Capital Assets -net 


238,936 


220,176 


Other Assets 


10,227 


8,565 


Total assets 


$344,884 


$301,487 


Liabilities 






Current Liabilities Payable from Current Assets: 






Accounts payable and accrued liabilities 


$ 12,737 


$ 8,548 


Current maturities of long-term obligations 


2,439 


2,437 


Accrued interest payable 


213 


213 


Total current liabilities 


15,389 


11,198 


Current Liabilities Payable from Restricted Assets: 






Current maturities of revenue bonds 


3,235 


3,085 


Accrued bond interest payable 


1,120 


1,197 


Lessee deposits 


4,330 


3,869 


Deferred grants 


12 


12 


Total payable from restricted assets 


8,697 


8,163 


Noncun-ent Liabilities 


1,946 


1,788 


Deferred Revenue - Net of current portion 


3,993 


4,243 


Long-tenn Obligations - Net of current maturities 


45,275 


48,841 


Total liabilities 


75,300 


74,233 


Net Assets: 






Invested in capital assets, net of related debt 


197,434 


175,683 


Unrestricted 


72,150 


51,571 


Total net assets 


269,584 , 


227,254 


Total liabilities and net assets 


$344,884 


$301,487 








(in Thousands) 


Years Ended June 30, 


2001 


2000 


Operating Revenues: 






Commercial and industrial 


$31,990 


$30,287 


Parking 


8,189 


6,548 


Cargo 


3,035 


2,462 


Fishing 


1,350 


1,329 


Ship repair 


abU 


t.UUU 


Harbor services 


848 


817 


Cruise 


bUL) 


con 

boy 


Other maritime 


1 ,4b9 


\,bbd 


Other 


H on A 

1,904 


1,335 


Total operating revenues 


50,345 


46,029 


Operating Expenses: 






Operations and maintenance 


37,129 


29,052 


Depreciation and amortization 


7,156 


6,728 


Total operating expenses 


44,285 


35,780 


Operating income 


6,060 


10,249 


Other Income (Expense): 






Interest and investment income 


4,108 


3,098 


Interest Expense 


(3,302) 


(3,595) 


Gain from fire insurance settlement 




1,759 


Gain (loss) on disposition of assets 


(1,214) 


16 


Other non-operating income 


5 


485 


Other non-operating expense 


(5) 


(485) 


Total nonoperating revenue and expenses 


(408) 


1,278 


Capital Contributions - Capital grants and other contributions 


10,978 


5,481 


Special Item - Payment for property rights in perpetuity 


25,700 




Change in Net Assets 


42,330 


17,008 


Net Assets - beginning of the year 


227,254 


210,246 


Net Assets - end of the year 


$269,584 


$227,254 



21 



(in Thousands) 



Yparq Fndpd Jiinp 3(1 


2001 




Cash Flows from Operating Activities: 






Cash received from tenants for rent 


$41,844 


$39,508 


Cash received from customers 


5,422 


5,631 


Deposits received from tenants and customers 


950 


593 


Cash paid to employees for services 


(18,392) 


(16,297) 


Cash paid to suppliers for goods and services 


(9,013) 


(3,837) 


Cash paid for quasi-external transactions 


(7,350) 


(7,251) 


Customer deposits returned 


(441) 


(303) 


Net cash provided by operating activities 


13,020 


18,044 


Cash Flows from Noncapital Financinq Activities: 






Proceeds from operating grant 


5 


50 


Operating grant expended 


(5) 


(26) 


Proceeds from disaster assistance 


2,748 


1,329 


Earthquake and storm damage repair expenses 




(1,936) 


Net cash provided (used) by noncapital financing activities 


2,748 


(583) 


Cash Flows from Capital and Related Financing Activities: 






Acquisition and construction of property, plant and equipment 


(i:D,DDD) 


(1 1 ,yy£) 


Dredging costs incurred 


(3,073) 


(3 536) 


Additions to Waterfront Land Use Plan 


'(74) 


(221) 


Payment from City for real property rights 


29,700 


1,735 


Capital grants received 


13,042 




Proceeds from loan 


1,992 




Contributed capital other than from grants 


256 


413 


Net insurance proceeds from fire casualties 


980 




Principal payments on long-term debt 


(5,521) 


(5,347) 


Interest payments on long-term debt 


(3,174) 


(3,477) 


Interest expense capitalized 


(58) 


(8) 


Proceeds from sale of materials 


67 


16 


Net cash provided (used) by capital and related financing activities 


7,471 


(22,417) 


Cash Flows from Investing Activities: 






Interest income received 


3,248 


3,450 


Investments (purchased) sold by Trustee 


(5,359) 


5,361 


Net cash (used) provided by investing activities 


(2,111) 


8,811 


Net Increase in Cash and Cash Equivalents 


21,128 


3,855 


Cash and Cash Equivalents - Beginning of Year 


58,404 


54,549 


Cash and Cash Equivalents - End of Year 


$79,532 


$58,404 




(in Thousands) 



Years Ended June 30, 


2001 


2000 


Noncash Noncapital Financing Activities: 






Earthquake damages and expenses included in 






accounts payable and accrued liabilities 




$203 


Noncash Capital and Related Financing Activities: 






Building (tenant) improvements financed by rent credits 


<t ACiA 


A AC 

44b 


Acquisition and construction of property, plant and equipment included 






in accounts payable and accrued liabilities 


O OCCi 


2,890 


Loss on abandonment of property and equipment 


l/ol 




Acquisition of equipment under capital lease 




onn 


Noncash Invpstino Activitips" 






Change in fair value of cash and investments held in City Treasury 


$ 585 


$ (296) 


Reconciliation of Net Income to Net Cash Provided 






by Operating Activities: 






uperaiing income 


0) D,UDU 


tin Q/iQ 


Adjustment to reconcile operating income to net 






cash provided by operating activities: 






Depreciation and amortization 


7 -I 

/ , lob 


C 70Q 


Change in allowance for doubtful accounts 


39 


(52) 


Net change in deferred revenue 


(924) 


(532) 


Changes in assets and liabilities: 






^lncreasej oecrease in. 






Receivables 


(1,499) 


(305) 


Matehals and supplies 


(2) 


77 


Prepaid insurance and other assets 


1,133 


699 


Increase in: 






Accounts payable and accrued liabilities 


548 


890 


Lessee deposits 


509 


290 


Net cash provided by operating activities 


$13,020 


$18,044 


Reconciliation of Cash and Cash Equivalents to the Balance Sheet: 






Cash and investments held in City Treasury - Port operating fund 


$ 70,706 


$ 43,233 


Cash outside City Treasury 


5 


5 


Cash held in City Treasury: 






Lessee deposits 


3,283 


2,774 


Capital outlay 


1,766 


2,453 


Cash held by Trustee - Bond interest and redemption 


4,357 


9.643 




80,117 


58,108 


Add - Change in fair value of cash and investments held in City Treasury 


(585) 


296 


Cash and Cash Equivalents 


$ 79,532 


$ 58.404 



23 




24 



Brannan Street Wharf Community 
Advisory Committee 



Fisherman's Wharf Environmental Quality 
Advisory Committee 



Aditya Advani 
Michael Alexander 
John Bizzell 
Anne Buell 
Janet Curtis 
Chris Degenhardt 
Richard Dickerson 
Carl Ernst 
Martin Fay 
Alfonso Felder 
Joanna Fong 
Richard Forst 
Ron Heffron 
Ellen Johnck 
Redmond Kernan 
Karen Kho 
Kathy Kleinbaum 
Joe LaClair 
Owen Lang 



Jeffrey Leibovitz 
David Lewis 
Matt Kekoa Lopez 
Milton Marks, III 
Felicity Mason 
Mary Anne Miller 
Jason Milton 
Amy Neches 
Paul Nixon 
Teresa Rea 
Arlene Rodriguez 
Mimi Silbert 
Vicki Simon 
Steven Spickard 
Roger Squires 
Michael Sweet 
Paul Warenski 
Beverly Wilson 



Bryant St. Pier Advisory Committee 



Greg Assay 
William Barnes 
John Bizzell 
Bobby Guillory 
Dale Hess 
Catherine Hooper 
Ellen Johnck 
Michael Karasik 
Jim Lazarus 
Jeffrey Leibovitz 



Diane Lochman 
John Love 
Kerstin Magary 
Christopher Martin 
Jane Morrison 
Stephanie Muller 
Norman Pearce 
Teresa Rea 
Frank Schweickert 
Julia Viera 



Ferry Building Advisory Group 

Charles Chase Monica St. Geme 

Anne Halsted Marina Secchitano 

Herb Lembcke Julia Viera 

Jane Morrison Don Wyler 
Bill O'Conner 



Alessandro Baccari 
Bob Battalio 
Jeanette Caito 
Tom Creedon 
Lynn Cullivan 
Jeremy Lowe 



Robert Miller 
Arleen Navarret 
Aaron Peskin 
Tim Przygocki 
Meg Reilly 



Fisherman's Wharf Waterfront 
Advisory Group 



Nunzio Alioto 
Alessandro Baccari 
Christopher Barnish 
Phil Bentivegna 
Michael Berline 
Eugene Bugatto 
Jeanette Caito 
Angela Cincotta 
Jennifer Clary 
Tom Creedon 
Lynn Cullivan 
Philip De Andrade 
Ronald Duckhorn 
Tom Escher 
Liz Garcia 



Dale Hess 
Nick Hoppe 
Kathy Howard 
Michael La Rocca 
Kathy Lohan 
Robert Macintosh 
Christopher Martin 
Robert Miller 
Meg Reilly 
David Robinson 
Nan Roth 
Sal Tarantino 
William Thomas 
Kevin Westlye 



Maritime Commerce Advisory Committee 



Anthony Bruzzone 
Bill Butler 
Ronald Duckhorn 
Tom Escher 
Leif Gistrand 
Henry Graham 
Bobby Guillory 
Carl Hanson 
William Howard 
Claude Jacques 
Capt. Frank Johnson 



Capt. Peter Mclsaac 
Fred Pecker 
Frank Riley 
Marina Secchitano 
Richard Smith 
John Swinnerton 
Ron Dean 

Lawerence Thibeaux 
Bill Ward 
Jim Wiltshire 



ADVISORY COMMITTEES 



Northeast Waterfront Advisory Group 



Carlos Afre 
John Blum 
Jennifer Clary 
Alex Corns 
Michael Franklin 
Liz Garcia 
Anne Halsted 
Wai Ching Kwan 
Toby Levine 
Eva Liebermann 



Carrie Ludwig 
Flicka McGurrin 
Cathy Merrill 
Stewart Morton 
Garrett O'Doherty 
Nan Roth 
Monica St. Geme 
Paul Stein 
Kevin Westlye 
Joe Wyman 



Pier 70 Advisory Group 

John Borg 
Mara Brazer 
Charles Chase 
Jennifer Clary 
Tom Escher 
Suasn Eslick 
Meb Gordon 
Carl Hanson 
Dennis Herrera 
Dwayne Jones 
John Killacky 



Toby Levine 
David Lewis 
Greg Markelus 
Richard Millet 
John Morgan 
Toye Moses 
Paul Nixon 
Stan Smith 
Steven Vettel 
Julia Viera 
Corinne Woods 



Rincon Point Advisory Group 



Joyce Armstrong 
Greg Assay 
Bob Battalio 
Frank Billed 
John Bizzell 
Tiffany Bohee 
Andrew Brooks 
Anne Ching 
Philip De Andrade 
Richard Dickerson 
Babette Drefke 
Martin Fay 
Alfonso Felder 
Richard Forst 
Michael Gray 
James Haas 



Drew Harper 
Robert Hertzfeld 
Cassandra Huysentruyt 
Mariuccia laconi 
Ellen Johnck 
Ken Johnson 
Michael Karasik 
Richard Kaufman 
Redmond Kernan 
Jeffrey Leibovitz 
Toby Levy 
Amy Neches 
Marielle Neri 
David Osgood 
Netra Roston 
Greg Samoulides 



Vicki Simon 
Kevin Solliday 
Jerry Street 
Michael Sweet 
Judith Walsh 



Paul Warenski 
Patricia Wilks 
Beverly Wilson 
Freda Winn 
Bill Wong 



Southern Waterfront Advisory Committee 



OIlie Burgess 
David Gavrich 
Bobby Guillory 
Jerrold Taylor 
Alfred Williams 
John Goode 



Dwayne Jones 
Alex Lantsberg 
Roger Peters 
Karen Pierce 
Olin Webb 



Waterfront Design Advisory Committee 



Boris Dramov 
Amit Ghosh 
Dan Hodapp 



Sylvia Kwan 
Ashur Yoseph 



Waterfront Development Advisory 
Committee 



Jennifer Clary 
Boris Dramov 
Amit Ghosh 
James Haas 
Sylvia Kwan 
Joe LaClair 
Brad McCrea 
Mary Anne Miller 
Aaron Peskin 
Shawna Richardson 



AnMarie Rodgers 
Simon Snellgrove 
Steven Vettel 
Ron Wallace 
Ernestine Weiss 
Corinne Woods 
Joe Wyman 
Ashur Yoseph 
Marie Zeller 



CREDIT 




SAN FRANCISCO 
PORT COMMISSION 

President: 

Kimberly K. Brandon 
Vice President: 

Brian McWilliams 
Commissioners: 

Michael Hardeman 

Pius Lee 
Denise McCarthy 



EXECUTIVE DIRECTOR 

Douglas F. Wong 

EXECUTIVE STAFF 

Chief of Operations: 

Karen V. Clopton 
Director, IVIaritime: 
Peter A. Dailey 
Director, Planning & Development: 
Byron A. Rhett 
Director, Engineering & Maintenance: 
Alex K. Lee 
Director, Real Estate: 
Theresa M. Picon 
General Counsel: 
Noreen Ambrose 
Manager, Communications & Publications: 
Renee D. Dunn 
Manager, Government Affairs: 
Taline Sanassarian 



PRODUCTION CREDITS 

Publisher: 

Port of San Francisco 
Editor: 
Renee D. Dunn 
Contributing Editor: 

G.L. Roybal 
Contributing Writers: 

Jay Ach 
Caria Bagneschi 
Lawrence Brown 
Dan Hodapp 
Mark Lozovoy 
Nieret Mizushima 
Richard H. Musson 
John J. Woo 
Photography / Illustration: 
Rick Chapman 
Bob Ecker 
Dwight Eschilman 
Ira Kahn 
Ted Kurihara 
Jennifer Mahoney 
Tom Paiva 
Barry Prager 
ROMA Design Group 
Tony Wessling 



27 




-pORTs^ 

SAN FRANCISCO 

TEL: 415.274.0400 
TTY: 415.274.0587 
FAX: 415.274.0528 
www.sfport.com 
Pier 1 • San Francisco • CA 94111 



DOCUMENTS DEPT 
JAN - 6 2004 

SAN FRANCISCO 
PUBLIC LIBRARY 




Fiscal Year 2002 

As Executive Director of the Port of San 
Francisco, I take great pride in the pro- 
gress and accomplishments at the Port 
this year. With the guidance of the San 
Francisco Port Commission and the hard 
work and dedication of Port staff, the 
year resulted in many noteworthy 
achievements. 

While the Port's revenue marginally grew 
by nearly one percent over the prior 
fiscal year - a total of $50.5 million 
compared to $50.3 million in 2001 - 
forecasts for the future are that the Port's 
revenues will remain stable, with more 
opportunities for further growth. 



With our maritime operations, the Port 
was successful in attracting break-bulk 
cargo to Pier 80 including newsprint, steel 
and lumber. This diversification was the 
result of market opportunities and the 
recommendations of a maritime cargo 
commercial opportunity study completed 
by the Port and its Maritime Commerce 
Advisory Committee. 

New cargo lines that began calling at the 
Port were Star Shipping, SK Shipping, 
Pan Ocean, Hyundai, Norske Pacific, 
Norsul, and Gearbulk. These lines comp- 
lemented the container carriers of TMM, 
Columbus Line, Maruba, Polynesia, and 
CCNI that have been long-term customers 
of the Port. 



Given the uncertain economic times in 
the nation, the Port exercised great 
strategic vision by successfully under- 
taking an unprecedented number of 
large-scale, high-dollar valued develop- 
ments through private/public-sector 
financing. 

Through this strategy of financing its 
ongoing developments, the Port will 
continue to diversify its portfolio of 
businesses, and reduce the risk of 
exposing itself to a significant negative 
economic impact due to a major 
downturn in any single sector. 



Additionally, Port staff stepped up 
marketing efforts aimed at cruise lines, 
and as a result, induced the home-porting 
of two new cruise ships beginning March 
of 2003. The Celebrity Mercury be 
launching a new 7-Day California coastal 
run every Sunday out of San Francisco, 
while Holland America's Prinsendam will 
begin offering 14-day roundtrips to Alaska. 
This additional business will yield over 
61,000 passengers in 2003, an amount 
equal to the total number of passengers 
the Port handled in fiscal year 2001/02. 
More significantly, the Port's successful 
marketing efforts in this area lied with the 



Photo: Tom Paiva 



The Port is a self-supporting enter- 
prise department of the City. All rev- 
enues generated by the Port are to be 
used only for Port purposes. The Port 
receives no operating subsidies fronn 
the City, and the Port has no taxing 
power. Its revenue is derived primarily 
from property rental to commercial 
and industrial enterprises and from 
maritime operations that include 
cargo, ship repair, fishing, harbor 
services, cruise, and other maritime 
activities. 

Change in Net Assets 

For fiscal year 2001/2002 the Port 
reported an increase in its net assets 
of $4.9 million. This compares to a 



$42.3 million increase in net assets 
posted in the previous fiscal year. The 
higher increase in the prior year was 
due, in large part, to a $25.7 million 
one time payment to the Port for use 
of a 17 acre land parcel in perpetuity. 
The increase in net asset growth 
reported for the current fiscal year was 
chiefly due to an $8.8 million gain from 
fire insurance settlement proceeds 
received for construction repairs at 
Piers 43 and 48. This other income 
more than offset an operating loss of 
$5.4 million. 

Operating results for FY 2001/2002 
and the prior fiscal year are shown in 
the table below: 



Years Ended June 30, 


2002 


2001 


Operating Revenue 


$50,494 


$50,345 


Operating Expenses 


(55,878) 


(44,285) 


Operating Income 


(5,384) 


6,060 


Other lncome/(Expense) 


7,545 


(408) 


Capital Grants & Contributions 


2,747 


10,978 


Payment for Rights in Perpetuity 




25,700 


Change in Net Assets 


$ 4,908 


$42,330 



I 




Photo: Tom Paiva 

Operating Revenue 



Fiscal year operating revenue increased to 
$50.5 million, up just 0.3% from the $50.3 
million posted for the previous year. 
Significant increases in the Commercial/ 
Industrial Cargo and Fishing sectors were 
offset by declines in Parking, Cruise and 
Other Revenues. 

Commercial and Industrial rent increased 
1.5% to $32.5 million, due principally to a 
combination of new and renegotiated 
leases, scheduled rent increases, and the 
full year effect of leases that began during 
the prior fiscal year. These increases more 
than offset reduced percentage rents from 
restaurant and retail sales, and lower rents 
stemming from the effect of vacancies at 
several sites on the Northern Waterfront, 
and lower office rental rates in the 
San Francisco market. 



Cargo revenues rose 25.1% to $3.8 million 

as a result of higher maritime facility u k c 

revenues. This was due in part to ^ 

additional rent from a leasehold J'r''^ ,^Pf' ' 

, . Fishing 3% 

expansion for a cargo customer ^ go| 

operating at Pier 92. 



Parking revenues declined by 9.9% to 
$7.4 million due to reduced demand 
as a result of a general slowdown in 
the Bay Area economy, and the 
decline in tourism due, in large part, to 
the effects of September 1 1 , 2001 . 

Cruise revenues were off by 23.5% to 
$0.4 million as a consequence of 
lower passenger counts, and a 
decrease in the number of cruise calls 
in fiscal year 2001/02 as compared to 
the prior fiscal year. 

Other Operating Revenues decreased 
by 19.7% to $1.5 million, due 
principally to reduced permit fees 
received, and lower miscellaneous 
facility revenue. 




Cruise 1% 



Other Maritime 3% 



Fishing revenues increased 10.2% to 
$1.5 million largely because of higher 
fishing facility revenues, and additional 
dockage and wharfage revenues resulting 
from the opening of Hyde Street Harbor. 




Photo: Barry Prager 



Operating Expenses 

Operating expenses for fiscal year 
2001/2002 increased to $57.5 million 
from $44.3 million the previous fiscal 
year. The increase principally reflects 
higher costs for personnel, office rent 
for the Port's administrative office at 
Pier 1, judgements and claims, 
maintenance dredging, workers' 
compensation, and higher operating 
expenses at Pier 80, as well as 
increased payment to the City for 
services provided to the Port by other 
City Departments. The rise in 
personnel costs is due to increased 
staffing, scheduled salary increases 
associated with collective bargaining 
agreements negotiated on a citywide 
basis, staff promotions and position 
reclassifications. The rise in judge- 
ments and claims is attributable to 
several matters that were settled in 
fiscal year 2001/02, and the probable 
ultimate loss related to other claims 
and judgements pending final 
settlement. 



Revenues From Capital Grants, 
Contributions and Other Sources 

Capital grants and contributions 
primarily consist of funds received or 
due from federal and state granting 
agencies that provide funding for 
many of the Port's capital projects. 
Funds received from capital grants 
and contributions totaled $2.7 million 
for fiscal year 2001/02 as compared 
with $1 1 .0 million the previous year. 
A majority of the Downtown Ferry 
Terminal project was completed, and 
grant funds received, by June of 2001 ; 
and a grant-funded project of similar 
size was not under construction during 
the current fiscal year. 

Grant funds received in fiscal year 
2001/02 were primarily used for 
construction of the Downtown Ferry 
Terminal, and Pier 1>^ - 5 Marginal 
Wharf projects. 



Photo: Doug Webster 



Bonded Debt 

At June 30, 2002, the Port's outstand- 
ing bond debt obligations consisted of 
Port Revenue Bonds, Series 1994; 
and City and County of San Francisco 
Harbor Improvement General 
Obligation Bonds, Series A and B. 
The Port's outstanding bond 
indebtedness decreased by $4.3 
million, or 10.9%, to $35.3 million in 
fiscal year 2001/02. 

Net revenue pledged to the Revenue 
Bonds is required to be maintained at 
1 .30 times net revenues available for 
revenue bond debt service. At June 
30, 2002 bonded debt service 
coverage was 1 .49 times, as 
compared to 3.02 at June 30, 2001. 



Audited Financials 

Copies of the Port's complete financial 
statements and independent auditor's 
report may be obtained for $5.00 from: 

Finance Manager 
Port of San Francisco 
Pier 1 

San Francisco, CA 941 1 1 




"PORTs^ 

SAN FRANCISCO 



I 



I 



r oil', ■ >l^m,ilvi. ^ 

iiiirri' ILII)